- GBP/USD in a chop as the bulls and bears battle it out within familiar ranges.
- Bulls need to get above 1.3110 for the near term.
GBP/USD is stuck in ranges across the time frames without a clear bias one way or the other. The following illustrates this across the weekly, daily and hourly time frame.
GBP/USD daily chart
As illustrated above, the price has run into the neckline of the formation, a move that was telegraphed in the prior day's analysis as follows:
''The price, however, is being held up at what could be a support zone on the daily chart. This is an old area of resistance and an M-formation could be marked so long as the forthcoming sessions are bullish.''
The analysis is fractal in nature and part of a long-term projection as per the weekly chart:
GBP/USD weekly chart
While the current week's candle is strongly bearish and arguably engulfing following the weekly dojo candle of last week, there is still time until the close for the price to move higher and even close bullish. However, this would be going against the grain in the futures market as short positions increased for the third week. Additionally, the price has already reached a 38.2% Fibonacci retracement level and prior support of December 2021. Therefore, there is a lot of work to come from the bulls:
Instead, we could see the price break the recent lows and mitigate the imbalance left behind from the summer of 2020 down in the 1.28 areas.
For the very near term, however, there is an M-formation on the hourly chart:
GBP/USD H1 chart
As seen, the price here has also made a 38.2% Fibo retracement from where the bears appear to be engaging from. However, should there be a move beyond the highs in the 1.3110 area, then the neckline of the formation would be expected to come under pressure near 1.3130.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds the uptick above 0.6450 after mixed Chinese data
AUD/USD is holding higher ground above 0.6450 in Friday's Asian trading, shrugging off mixed Chinese activity data for October. Traders are looking to cash in after the recent downfall even though the US Dollar stay firm and market mood remains cautious. US data is next in focus.
USD/JPY reverses Japan's GDP-led spike to 156.75
USD/JPY pares gains to near 156.50 in Asian session on Friday, revesing the early spike to 156.75 fuelled by unimpressive Japanese Q3 GDP data. The pair is facing headwinds from Japanese verbal intervention and a tepid risk tone, despite the sustained US Dollar strength.
Gold price extends decline on bullish US Dollar, investors brace for US PPI data
Gold price struggles to gain ground around $2,570 on Friday after bouncing off a two-month low in the previous session. The precious metal remains under selling pressure amid the strong US Dollar and the rising uncertainty surrounding the Federal Reserve's pace of interest rate reductions.
Bitcoin Price Forecast: BTC eyes $100K, what are the key factors to watch out for?
Bitcoin trades below $90K in the early Asian session on Friday as investors realized nearly $8 billion in profits in the past two days. Despite the profit-taking, Bitwise CIO Matt Hougan suggested that BTC could be ready for the $100K level, fueled by increased stablecoin supply and potential government investment.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.