|

GBP/USD Price Analysis: Choppy trading conditions leave the pair without a bias

  • 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. 

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD clings to small gains near 1.1750

Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key US data releases and the ECB policy announcements.

GBP/USD edges higher toward 1.3400 as traders await key data and BoE

GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.

Gold builds on previous week's gains, approaches $4,350

Gold preserves its bullish momentum after rising more than 2% last week and climbs toward $4,350 on Monday. The precious metal extends its upside as the US Dollar remains on the back foot on growing expectations for a dovish Fed policy outlook next year.

Solana consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout. On the institutional side, demand for spot Solana Exchange-Traded Funds remained firm, pushing total assets under management to nearly $1 billion since launch. 

Big week ends with big doubts

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

Solana Price Forecast: SOL consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana (SOL) price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout.