Price action up and down this week
The GBPUSD has had a week of trading up and down. The pair slid along lows on Monday, Tuesday and Wednesday near 1.3400, and moved two highs on Thursday and again today. The highs stalled near a swing area between 1.3503 and 1.3513.
In today’s trading, the high price was close to the high end of the week and the low price was close to the low end.
In the middle are the 100 and 200 hour convergent moving averages near 1.3456. That is where the price is currently negotiated. If you can’t get any higher and you can’t get down, sitting between the sounds is like the neutral place.
However, we know that the price will eventually work itself out (and spread one way or another).
The EURGBP, on the other hand, has seen a strong downward movement this week (although it is consolidating in the last 3 trading days).
The ECB Lagarde is in no rush to raise rates and that keeps the pressure on the EURGBP.
Looking at the daily chart below, the pair finds some support near a swing area between 0.8380 and 0.8415 (see the numbered red circles dating back to December 2019 to February 2020).
Invest in yourself. See our forex education center.