GBP/USD Tries to Exit a Short-term Range

GBP/USD traded lower on Wednesday after it hit resistance near the 1.2760 barrier, which is fractionally below the high of June 7th. The slide continued today as well and at the time of writing the rate it’s trying to move pass the 1.2670 mark. The pair had been oscillating between those two barriers since June 4th, something that painted a flat short-term picture up until now, but a 4-hour close below 1.2670 might be a sign that the bears are taking more control.

If the bears manage to distance themselves from the 1.2670 hurdle, we may see them driving the battle towards the low of June 3rd, at around 1.2610. They could take a small break after hitting that zone, but any corrective bounce could stay short-lived below 1.2610, from where another negative leg may be initiated, perhaps aiming for another test near 1.2610. If at that time, the 1.2610 zone fails to halt the slide, then we could experience extensions towards the 1.2560 support, defined by the low of May 31st.

Taking a look at our short-term oscillators, we see that the RSI lies below 50, pointing down, while the MACD, already slightly below its trigger line, has just touched its toe below zero. These indicators detect negative momentum and support the case for the bears to take some more control, at least in the short run.

Alternatively, we would like to see a decisive recovery above 1.2760, the small range’s upper bound, before we start examining the bullish case. Such a move would confirm a forthcoming higher high on the 4-hour chart and may initially pave the way towards the 1.2820 area, slightly above the peak of May 21st and fractionally below the low of May 15th. Another break, above 1.2820, could extend the recovery towards the 1.2860 zone, marked near the inside swing low of April 25th.

GBPUSD - One-stop Multi-asset Experience for Trading and Investment Services



The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

83% of the 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. Please read the full Risk Disclosure:

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 


GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.


XAU/USD inches closer to multi-year highs, trades around $1,810

The XAU/USD pair registered its highest weekly close since September of 2011 at $1,799 on Friday and continued to push higher on Monday.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News

Forex Majors