Last Updated on October 8, 2020
GBP/USD Outlook & Technical Analysis for US Binary Options
This week presents high impact news on the part of the British Pound paired against the USD. We’ll be looking out for high volatile moves and technical patterns triggering these moves.
GBP: GROSS DOMESTIC PRODUCT
The National Statistics will on Friday, May 10 release the GDP readings which shows the total of goods and services produced by the UK, and viewed as a broad measure of economic exercises.
An increasing GDP signifies strength for the GBP while a bearish trend shows weakness for the GBP.
U.S Budget Statement (Monthly)
This week Friday, May 10, the Financial Management Service (FMS) will release the monthly budget statement. This is a review of the financial activities of Federal Reserve Banks, Issuing Officers, and all Federal entities.
A budget statement where receipt exceeds budgetary outlay is considered positive for the greenback, while a deficit is seen as negative.
GBP/USD: Monthly Charts
Following our usual top-down analysis, and making reference to the upward swing between 1.16496 (03 Oct ‘16) and 1.43455 (1.43770), the GBP/USD retraced the bullish swing by 61.8% Fibonacci retracement. By this, the foreign exchange could not close below 0.618(1.26959) support level.
The gathering of bears on the major 61.8% Fib level signalled on 01 Nov ’18 couldn’t advance beyond the support, therefore caused the pair to recoil in the opposite direction.
On 01 February ’19, the exchange rate of GBP to USD advanced and closed above the 1.31745, flagging a rejection of the bearish pressure.
GBP/USD: Weekly Chart
Viewing the pair from a weekly chart perspective, we observe a formation of exhausted bears, this time in the form of bullish regular divergence setup.
The bullish divergence formation was reinforced with early bullish price patterns on 31 December ’18 as the price increased by 5.11%.
Following the formation of a bearish inside bar pattern at the closing price of 28 January ’19, the price made a price decline of about 3.35% and later resumed deep oscillatory motions going forward.
A breakout of bearish pressure resistance was signalled on 04 February ’19 with established support at 1.27732. The pair continues to show highly volatile moves of bullish and bearish on best binary options robot.
GBP/USD: 4HR Chart
The 4hour chart shows a comeback for the bulls as they break through bearish accumulation resistance of 1.30461 on 25 April ’19 08:00, leading to a 2.1% upward surge in price compared to a 0.32% risk exposure.
A bearish regular divergence pattern signalled in combination with an opposite breakdown of bullish accumulation on 05 May ’19 16:00 forced the GBP into a downward spiral of roughly 1.1% at press time as against 0.2% risk exposure.
GBP/USD: H1 Chart
From a 1hour chart perspective, the pair broke below a double bullish accumulation pattern on 05 May, similar to the 4hour chart.
A temporary upward swing was signalled following a breakout of bearish accumulation on 06 May ’19 18:00 with major support at 1.30898.
The bullish swing came to an end as an opposite breakdown of double bullish accumulation was signalled on 07 May ’19 02:00 – 18:00, and 08 May ’19 01:00 respectively. From the recent breakdown of bullish pressure supports, the pair plummets by 0.7% as against a 0.2% risk for short selling.
Although the long term monthly and weekly time frame show bullish sentiment in favor of the GBP, the lower 4hour and 1hour time frames are our recommended time frames as they offer swing trading opportunities in the form of collapse of bullish and bearish pressure zones.