GBP Technical Analysis Talking Points:
- It’s been a tail of two trends in GBP/USD[1] so far this month, as a bearish push in the first portion of November was soundly reversed last week.
- In the major pair of GBP[2]/USD[3], price action put in a strong push towards the 1.3000 psychological level but hasn’t yet been able to scale back-above. GBP/JPY[4] posed a trip up to fresh five-month-highs – can buyers can buyers continue to push?
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GBP Strength Comes Back After Early-Month Slump
Its been a week of strength for the British Pound as the GBP showed signs[11] of recovery against both the US Dollar[12] and the Japanese Yen[13]. In GBP/USD, in particular, that recovery theme is quite visible as November price action[14] has thus far produced a ‘V-shaped’ move involving a consistent bearish trend in the first portion of the month followed by an equally consistent recovery from that move. But, similar to what was seen on October 31st and November 1st, buyers seem uninterested in a re-test of the psychological level at 1.3000, with price action posturing just below the big figure.
GBP/USD Four-Hour Price Chart
Chart prepared by James Stanley[15];
