GBPUSD falls below the 100 hour MA. Ups and downs in trading this week

GBPUSD
GBPUSD trades below its 100 hour moving average

The  GBPUSD 
GBP/USD

The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the
forex exchange market, giving it ample liquidity and a low spread. Whilst the spreads of currency pairs vary from broker to broker, generally speaking, the GBP/USD often stays within the 1 pip to 3 pip spread range, making it a decent candidate for scalping. The GBP/USD pair, also informally known as “cable” (due to transatlantic cables being used to transmit its exchange rate via telegraph back in the 19th century) has a positive correlation with the EUR/USD, and a negative correlation with the USD/CHF. Trading the GBP/USDWhilst a lot of traders and even brokers will assert that the best time to trade the GBP/USD is during its most active hours during London and New York, doing so can be a double-edged sword due to the often-unpredictable nature of the pair. Its volatility also fluctuates often, and so what could be a profitable looking strategy one month, may not be so productive in later months. In addition, purely technical traders can really struggle to be consistent with this pair, (i.e. by ignoring fundamentals), due to the unique political nature of the United Kingdom. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not in the cards for the foreseeable future, it is clear the GBP/USD will be influenced by any developments and negotiations with the European Union.

The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity and a low spread. Whilst the spreads of currency pairs vary from broker to broker, generally speaking, the GBP/USD often stays within the 1 pip to 3 pip spread range, making it a decent candidate for scalping. The GBP/USD pair, also informally known as “cable” (due to transatlantic cables being used to transmit its exchange rate via telegraph back in the 19th century) has a positive correlation with the EUR/USD, and a negative correlation with the USD/CHF. Trading the GBP/USDWhilst a lot of traders and even brokers will assert that the best time to trade the GBP/USD is during its most active hours during London and New York, doing so can be a double-edged sword due to the often-unpredictable nature of the pair. Its volatility also fluctuates often, and so what could be a profitable looking strategy one month, may not be so productive in later months. In addition, purely technical traders can really struggle to be consistent with this pair, (i.e. by ignoring fundamentals), due to the unique political nature of the United Kingdom. The recent drama surrounding Brexit has added another layer of uncertainty to this currency pair. With a smooth resolution not in the cards for the foreseeable future, it is clear the GBP/USD will be influenced by any developments and negotiations with the European Union.
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is trading back below its 100 hour moving average 1.31194. The current price is trading just below that level at 1.3113. The low today reached 1.31069. That was just above the swing low from yesterday’s trade at 1.31049. If the price can stay below the 100 hour moving average and move below the 1.31049, it would open the door for further downside momentum with the next target area between 1.3078 and 1.30878.

Move back above the 100 hour moving average and the 50% of the range since March 15 would be eyed at 1.31482. That is near the high for the day. The 200 hour moving average at 1.31606 would also be eyed on a move back to the upside..

Recall from yesterday – and again on Wednesday – the price of the GBPUSD moved above the 200 hour moving average (green line) after breaking below on Monday in the Asian session. However, momentum on the breaks above that moving average could not be sustained. On Wednesday, the price moved up to test the Monday high (and high for the week) at 1.3182, but found willing sellers at 1.3181 just below that level. Yesterday, the break above the 200 hour moving average was just a few pips before buyers turned to sellers.

So in the medium-term, getting above the 200 hour moving average and staying above that level, would be an important barometer for buyers. Absent that move, the sellers remain in control.

For the week, the range is 132 pips with the low reached on Tuesday at 1.3049. That represents the lowest trading range for the calendar year and the lowest range since 130 pips during the week of December 5, 2021.

With the price trading near mid range for the week, can sellers pushed down and extend the range? It seems unlikely with only 7 or so hours left in the day, but one never knows. Stay below the 100 hour moving average and sellers may gain additional confidence.

PS As I type, GBPUSD is making news lows and looks to break below the 1.3100 level. Sellers in control. Watch 1.3078 – 1.30878 swing area next followed by the low for the week at 1.3049.

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