TriumphFX Forex Analysis – GBP Pairs – October, November & December 2020


EURGBP – Daily and 4 Hour Charts

EURGBP – Daily Chart
EURGBP – 4 Hour Chart

Price has been bullish.

On the daily time-frame, EURGBP is up-trending within a large consolidation. Price action has formed a bullish channel and the moving averages are bullish and steady, suggesting that the uptrend may continue. EURGBP is moving within a consolidation area though (0.8295-0.9425), signalling that price may suddenly become bearish.

On the 4 hour time-frame, EURGBP is down-trending within a bearish channel. The moving averages are bullish and widening.

Buying opportunities could exist around the daily and 4 hourly moving averages, around the daily bullish channel support area and around the horizontal levels at 0.8970, 0.8870, 0.8680, 0.8575 and 0.8295. A bullish move may be rejected or reverse around the 4 hour bearish channel resistance area, around the daily bullish channel resistance area and around the horizontal levels at 0.9210, 0.9260 and 0.9425.

The European Central Bank (ECB) has recently become more optimistic about the Eurozone’s economic future. Strong economic stimulus and low interest rates will need to remain to support growth and inflation though. The interest rate continues to be at the record low of 0.00%.

The Bank of England (BOE) has set the interest rate at a record low of 0.10%. Policymakers believe that the UK will take longer to recover from the COVID-19 economic crisis than first initially thought. They have warned about cutting rates below 0.00%, meaning that a negative rate is unlikely in the near future.

GBPCHF – Daily and 4 Hour Charts

GBPCHF – Daily Chart
GBPCHF – 4 Hour Chart

GBPCHF has been down-trending on the daily time-frame but is also looking a little indecisive. Price action has formed a slight bearish channel and the daily moving averages are bearish, signalling that the downside direction may continue.

Price on the 4 hour time-frame is currently up-trending – price action has formed higher swing highs and lows. The moving averages are bearish and widening though, suggesting possible downside.

Opportunities to go short could exist around the dynamic resistance of the 4 hour and daily moving averages, around the daily bearish channel resistance area and around the horizontal levels at 1.1950, 1.2230 and 1.2810. A bearish move may find support around the 4 hour trend support area, around the bearish channel support area and around the horizonal support levels at 1.1680, 1.1600 and 1.1230.

The Bank of England (BOE) has set the interest rate at a record low of 0.10%. Policymakers believe that the UK will take longer to recover from the COVID-19 economic crisis than first initially thought. They have warned about cutting rates below 0.00%, meaning that a negative rate is unlikely in the near future.

The Swiss National Bank (SNB) continues to keep rates at the all-time low of -0.75%. The Swiss economy continues to be stagnant. The economy was showing signs of positive momentum but COVID-19 is causing the economic to contraction. The Swiss Franc continues to be highly valued as a safe-haven currency. The SNB recently announced that it will continue to intervene with in foreign exchange markets but will likely keep rates unchanged until at least 2021.

GBPJPY – Daily and 4 Hour Charts

GBPJPY – Daily Chart
GBPJPY – 4 Hour Chart

As suggested in our last GBP chart analysis, price has been forming higher swing highs and lows.

GBPJPY is up-trending and is currently in a retrace phase. Price action has formed a bullish channel. The daily moving averages are currently moving sideways, suggesting market indecision.

The 4 hour time-frame is showing a recent bearish move but price is overall indecisive. The moving averages are bearish and widening, suggesting market indecision.

Trading opportunities may exist around the daily and 4 hourly moving averages, around the support and resistance areas of the bullish channel and around any of the identified horizontal levels at 125.75, 129.35, 131.75, 133.25, 139.80, 141.85, 144.50 and 147.40.

The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well under the current COVID-19 economic crisis.

The Bank of England (BOE) has set the interest rate at a record low of 0.10%. Policymakers believe that the UK will take longer to recover from the COVID-19 economic crisis than first initially thought. They have warned about cutting rates below 0.00%, meaning that a negative rate is unlikely in the near future.

GBPUSD – Daily and 4 hour Charts

GBPUSD – Daily Chart
GBPUSD – 4 Hour Chart

GBPUSD has been bullish and has reversed around 1.3470, as suggested in our last GBP chart analysis.

Price continues to look indecisive but the daily time-frame is showing signs of upside momentum – price action has formed higher swing highs and higher swing lows. The daily moving averages continue to move sideways though, suggesting market indecision.

On the 4 hour time-frame, GBPUSD is moving sideways and has formed a range at 1.2695-1.2975.

Opportunities to go long could exist around the daily trend support area, around the daily moving averages and around the horizontal levels at 1.2695, 1.2305 and 1.2015. A bullish move may be rejected or reverse around the horizontal resistance levels at 1.2975 and 1.3470.

The Bank of England (BOE) has set the interest rate at a record low of 0.10%. Policymakers believe that the UK will take longer to recover from the COVID-19 economic crisis than first initially thought. They have warned about cutting rates below 0.00%, meaning that a negative rate is unlikely in the near future.

The Federal Reserve have suggested that rates may remain low for the short-term future. Rates currently remain at the low of 0.25%. Inflation is around target and the US job market continues to be robust.

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