Jump to content

GBP/USD Technical Analysis: Snapping Downtrend May Prove Difficult

Recommended Posts


  • Cable broke a trend-line and congestive pattern
  • Overall, though, quite heavy with trend/tone negative
GBP/USD Technical Analysis: Snapping Downtrend May Prove Difficult


Cable is trying to turn the corner and at least recover from the depts of the past couple of months’ worth of selling, but that may prove difficult as the year draws towards its conclusion. The past couple of weeks brought a slowing in downward momentum that made for a falling wedge type pattern.

The break out of the pattern on Friday and rally above a six week trend-line hinted towards the idea that we may see GBP/USD recover above the lower parallel from July and rally a bit from here. It still may, but it will need to get into gear soon or else the generally poor tone and downward trend will prove to be too much to turn things around.

In the event we see price hold above the trend-lines from early November and the wedge, we could see Cable rally towards the 11/30 high, 11/10 low. The area around 13360 has proven itself as a meaningful level to watch. Perhaps a rally to this point is all that can develop, but if not a break above could ignite more strength.

If Friday’s break turns out to be nothing more than a blip in the context of the ongoing downtrend, then the first level to watch for invalidation of the trend-line break is the recent low at 13161. There is a minor level at 13134, followed by another minor level at 12853.



gbp/usd daily chart


gbp/usd 4-hr chart

GBPUSD Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.


Written by Paul Robinson, Market Analyst, 13th December 2021. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 25/09/23 22:13
  • Posts

    • The cryptocurrency industry has grown rapidly in recent years, with the total market capitalization now exceeding $500 billion. However, the industry still faces a number of challenges, including security and on-chain efficiency which is one of the biggest challenges in the cryptocurrency industry, because in recent years, there have been a number of high-profile hacks of cryptocurrency exchanges & wallets, and traders are faced with high cost of on-chain transactions. All of which summed up to make cryptocurrency trading less efficient. In order to address these issues, exchanges are seen taking up the responsibility of solving the problems and I've seen Bitget, a leading cryptocurrency derivatives exchange, recently partnering with Cobo, a leading provider of digital asset custody and security solutions. This partnership is aimed at enhancing the security and efficiency of cryptocurrency trading, which will allow users to seamlessly execute cross-exchange transactions, enabling users to capitalise on arbitrage opportunities without having to deposit their funds directly on exchanges. This could significantly reduce on-chain transaction gas costs and make crypto investments more efficient and cost-effective. Developments like this, if it could be capitalised on would take away bad players from the industry, make crypto a safe place and increase its adoption, but how wide would it cover for the whole users in the crypto space and even Bitcoin?
    • Stock Market Report S&P 500 - NASDAQ 100 - RUSSELL 2000 - DAX 40 - FTSE 100 - ASX 200. Elliott Wave Analysis Summary: Elliott Wave (iv) of  c) of 4 Flat Correction for US Indices and DAX. Trading Strategies: Once Wave (iv) has reached its 38.2% retracement level, short term traders can start to look for short trade setups into Wave (v) of c) of 4. The longer term Video Chapters 00:00 SP 500 (SPX)  11:01 NASDAQ (NDX) 12:39 Russell 2000 (RUT) 14:20 DAX 40 (DAX) 19:37 FTSE 100 UKX (UK100) 23:18 ASX 200 (XJO) 29:08 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge    Access Trial    
    • I think bitget will be the obvious option cos binance that use to be a good option isn't finding it rosy atm with regulatory bodies and speculations around the health of the exchange aren't friendly to feel safe with them atm
  • Create New...