Technical analysis: Will the GBP/USD price retreat continue?
|GBP/USD technical analysis summary
Sell Stop: Below 1.3523.
Stop Loss: Above 1.3564.
| Indicator | Signal |
| RSI | Buy |
| MACD | Sell |
| Donchian Channel | Sell |
| MA(200) | Sell |
| Fractals | Sell |
| Parabolic SAR | Sell |
GBP/USD chart analysis
The GBPUSD technical analysis of the price chart on 1-hour timeframe shows GBPUSD: H1 is falling under the 200-period moving average MA(200) which is tilted downward itself. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.3523. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.3564. After placing the order, the stop loss is to be moved to the next fractal high indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental analysis of forex – GBP/USD
UK manufacturing PMI flash reading was worse than expected for January. Will the GBPUSD price retreat continue?
UK manufacturing PMI flash reading was worse than expected for January: Markit reported UK manufacturing PMI flash reading came in at 56.9 for January after 57.9 for December, when a reading of 57.7 was expected. This is bearish for GBPUSD.
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
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.