GBPUSD Daily – Negative sentiment prevailing

Nigel Frith
GBPUSD letters on toy blocks behind two toy men

Written on 25/05/2020 by Theunis Kruger, FX Trainer at FXTM

The GBPUSD currency pair, on the D1 time-frame, was in an uptrend until April the 14th when a higher top was recorded at 1.26471. The bears found the price attractive and supply overcame demand.

FXG competition banner

After the higher top at 1.26471, the market structure changed and lower tops and bottoms followed. The price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator crossed into bearish territory by breaking the zero baseline.

A possible critical support level formed when a bottom was recorded on May the 18th at 1.20739. Buyers tried to push the market higher but could not maintain the demand pressure and a lower top formed on May the 19th at 1.22961.

If the GBPUSD breaks through the critical support level at 1.20739, then three possible price targets may be calculated from there. Applying the Fibonacci tool to the bottom of the support level at 1.20739 and dragging it to the top of the resistance level at 1.22961, the following targets might be considered. The first target could be projected at 1.19366 (161 %). The second price target might be considered at 1.17144 (261.8%) and the third and final target may be expected at 1.13549 (423.6%).

If the 1.22961 resistance level is broken, the anticipated price targets above are null and void, because, from a structural point of view, it will no longer be a downtrend.

As long as sellers maintain a negative attitude and supply overcomes demand, the outlook for the GBPUSD currency pair on the Daily time-frame will remain bearish.

GBPUSD Daily Forex Price Graph with indicators

 

 

 

 

 

 

 

 

 

For more information, please visit: FXTM                

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Nigel Frith

Latest news

What Does Binance Being Kicked Out of Belgium Mean for Crypto Prices?
Belgium regulator FSMA orders crypto platform Binance to immediately cease its operations. Read more
Crypto Traders and Coin Prices Face New Challenge as Binance Gives up its FCA Licence
Binance Markets Limited (BML) has requested its FCA licence be revoked. Read more

Safest Forex Brokers 2023

Broker Info Best In Customer Satisfaction Score
#1 72% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#4 plus500 logo82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker
5

    Forex Fraud Certified Brokers

    BlackBull Markets Logo
    AvaTrade logo
    eToro Logo
    FxPro logo
    XM Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.