- GBP/USD bears are in play on the backside of last week's bullish trend
- 1.1950 is a target on the downside while 1.2070 is a target on the upside.
As per mid-week of last week's analysis, GBP/USD Price Analysis: Sell-off cutting into Day-3 longs, 1.2050 eyed for days ahead, the price of the Pound Sterling fell to test the 1.2050's target as the following illustrates:
GBP/USD prior analysis
''A bullish close on the day will be giving us three bullish closes in a row and leaves the risk of another sell-off on Friday:''
GBP/USD update
GBP/USD is on the backside of the trend now. The bears are in play and there are prospects of a continuation towards 1.1950 (daily ATR is 114 pips) with the -272% Fibonacci aligned at that juncture that meets the prior structure looking left. Further down we have the bottom of the new 100 pip box at 1.1900 and 1.1800 there after that meets a -61.8% Fibo.
However, that is not to say there will not be a move up for the day ahead as follows:
Asia could be setting up the lows for the near term for London's session's rally as the chart above illustrates, taking into account the liquidity above 1.2060 and to 1.2070. Such a move would fall within the average daily range of 114 pips and the outcome would complete the daily chart's bearish continuation thesis.
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
EUR/USD drops below 1.0550 ahead of German inflation data
EUR/USD extends losses below 1.0550 in the European session on Thursday. The pair's downside could be attributed to French political worries and a broad US Dollar rebound amid the cautious mood. Traders remain wary due to mounting trade war risks. Germany's inflation data is in focus.
GBP/USD holds lower ground near 1.2650
GBP/USD remains pressured near 1.2600 in European trading on Thursday as the US Dollar picks up haven dmeand on deteriorating risk sentiment. A sense of cautiom prevails amid Trump's tariff plans even though liquidity remains thin on Thanksgiving Day.
Gold price bulls remain on the sidelines on stronger USD, positive risk tone
Gold price (XAU/USD) reverses an intraday dip to the $2,620 area and trades near the daily high during the first half of the European session on Thursday, albeit it lacks bullish conviction. Investors remain concerned that US President-elect Donald Trump's tariff plans will impact the global economic outlook.
Fantom bulls eye yearly high as BTC rebounds
Fantom (FTM) continued its rally and rallied 8% until Thursday, trading above $1.09 after 43% gains in the previous week. Like FTM, most altcoins have continued the rally as Bitcoin (BTC) recovers from its recent pullback this week.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.