GBPUSD ends the day indecisive
Moving lower for the 3rd day in a row, GBPUSD finished Tuesday at 1.3370 edging lower 11 pips (-0.08%) ahead of tomorrow's FOMC announcement. Today's closing price of 1.3370 marks the lowest close since June 4th. Trading 44 pips higher after the open, GBP/USD was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Tuesday's trading range was 83 pips (0.62%), that's slightly below last trading month's daily average range of 88 pips. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average. Prices continued to consolidate within a tight trading range between 1.3342 and 1.3442 which it has been in now for the last three days.
Prices are trading close to a key support level at 1.3305. The forex pair found buyers again today around 1.3342 for the third trading day in a row after having found demand at 1.3345 in the prior session and at 1.3354 two days ago.
Though the FX pair is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.
Buying could speed up should prices move above the close-by swing high at 1.3442 where further buy stops might get activated. With prices trading close to this year's low at 1.3205, downside momentum could accelerate should the market break out to new lows for the year. As prices are trading close to June's low at 1.3254, downside momentum might speed up should Cable mark new lows for the month.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being very bearish.
Market Conditions for GBP/USD
|Death Cross||TQ Pro Members Only|
|2 Consecutive Lower Closes||TQ Pro Members Only|
|Closed below last periods low||TQ Pro Members Only|
|Black Candle||TQ Pro Members Only|
|High close to previous High||TQ Pro Members Only|
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