GBP/USD outlook

Source: Dukascopy Bank SA
FX pair saw increased volatility with little impact, closing below 1.34800.

Economic Calendar


Low volatility levels may be considered as primary scenario for the upcoming trading week.

GBP/USD hourly chart analysis

GBP/USD chart shows a strong bearish trend reversal, with the price now in a minor corrective bounce after a sharp sell-off that decisively broke the prior uptrend. The market structure has shifted to bearish, with the price consolidating near the recent lows around the 1.3460 support level. This bearish view is strongly confirmed by the moving averages, as a "death cross" has occurred with the price now trading well below all three SMAs. These averages will now act as strong dynamic resistance to any rally, with the first major resistance zone around 1.3560 - 1.3600. The path of least resistance appears to be to the downside, with any bounce likely being a corrective move before another test of the 1.3460 lows.

Hourly Chart

GBP/USD daily candle chart analysis

A long-term trend for GBP/USD is bullish, and the price is now attempting to break out of a multi-month consolidation range. After trading sideways for months, the price is now holding firmly above all key daily moving averages, a sign of renewed buying interest.

Daily chart


Traders are long
Continuing previous weeks trend majority of traders currently anticipate a bullish trend in the FX pair, largely driven by ongoing weakness in the U.S. dollar..




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