Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
GBP/USD Price Forecast: Reversal Signals on GBP vs USD Chart

GBP/USD Price Forecast: Reversal Signals on GBP vs USD Chart

Mahmoud Alkudsi, Analyst

Share:

What's on this page

GBP/USD Price Technical Outlook

  • Bears Show More Sway
  • Key Levels and threshold to consider

Hesitant Bears

On Thursday, British Pound fell to its lowest level in thirty-five years at 1.1411. The price rallied as bears seemed to cover. In the following day, the market closed the weekly candlestick in the red with nearly 5.1% loss. This week, bears eased up more allowing GBP/USD to rally further.

The Relative Strength Index (RSI) abandoned the oversold territory, highlighting a weaker downtrend momentum.

GBP/USD DAILY PRICE CHART (Nov 14, 2018 – MaR 25, 2020) Zoomed out

GBPUSD daily price chart 25-03-20 Zoomed out
Building Confidence in Trading
Building Confidence in Trading
Recommended by Mahmoud Alkudsi
Building Confidence in Trading
Get My Guide

GBP/USD DAILY PRICE CHART (JAN 30– Mar 25, 2020) Zoomed IN

GBPUSD daily price chart 25-03-20 Zoomed in

From the daily chart, we noticed that on Friday GBP/USD rallied to current trading zones 1.1550 – 1.1958. On Monday, the market failed to close below the low end of the zone reflecting further hesitation from bears. This led the price to really eyeing a test of the high end of it.

A close above the high end of the zone may lead GBPUSD to raise towards 1.2195. Further close above that level could extend the rally towards 1.2364. That said, the daily and weekly resistance levels marked on the chart (zoomed in) should be watched along the way.

In turn, any failure in closing above the high end of the zone could mean more of the same i.e. the price could point lower towards the low end of the zone. Further close below that level could send GBPUSD towards 1.1250. Nevertheless, the daily support level underscored on the chart should kept in focus.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Mahmoud Alkudsi
Traits of Successful Traders
Get My Guide

GBP/USD Four Hour PRICE CHART (Mar 7 – Mar 25, 2020)

GBPUSD four hour price chart 25-03-20

Looking at the four-hour chart, we noticed that yesterday GBP/USD rallied above the downtrend line originated from the March 13 high generating a bullish signal. Today, the market has violated the neckline of double bottom pattern (reversal formation) located at 1.1935 eyeing a test of 1.2360.

Thus, a break above 1.1986 could provide another bullish signal. This could cause a rally towards 1.2108. Although, the daily resistance level underlined on the chart should be considered. On the other hand, a break below 1.1714 might send GBPUSD towards 1.1580. Yet, the daily support level printed on the chart should be monitored.

See the chart to find out more about key levels Cable would encounter in a further bearish /bullish scenario.

GBP Forecast
GBP Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q1 British Pound Forecast
Get My Guide

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES