is currently in a difficult situation. After the collapse in the first half of September, the price can’t return to a stable movement.
Instead, the pair forms small channels and moves within them: from the support line to the resistance one and back, sometimes covering this distance within one hour. In general, this allows you to analyze the consistent pattern and predict the next price changes. So, now GBP/USD is moving up from the support line. Basing on the chart figures over the past months, the price is expected to reach the 1.299 resistance line and then pull back.
The beginning of September was marked by a sharp movement for many currencies. For example, has shown a rapid growth, almost reaching its previous high. But, as expected, the price could not maintain such positions, and by the beginning of October the pair reached the strong support line of 0.909 through a series of rollbacks and corrections. Moreover, the price bounced off this line and started moving up. Thus, EUR/GBP is predicted to try to return to its previous levels and it will rise up to the resistance line of 0.926.
On the hourly TF, we see that since the end of September has shown a quite steady growth, without serious pullbacks. During this time, she managed to recover in positions that she had lost after a strong fall in early autumn. But now the price has approached a strong resistance zone – the intersection of two lines. So, we have no reason to expect that the pair will have enough strength to break through this resistance. Therefore, it is worth opening a sell deal now, without waiting for the price falling.
In 2020, surprised everyone with sharp price fluctuations, showing either a rapid, sometimes one-day rise, or the same fall. By all means, now the situation is not as tense as, for example, in April, when the pair tested its historical maximum, but we continue to observe sharp spikes in prices, between which the pair behaves more carefully. Thus, if you watch the chart, we see that the pair has shown such sharp jumps over the past few months three times. In July, there was a sharp increase, in August – a fall, and in September, there was a growth again. Now the price is gradually approaching the resistance zone – the strong line and the level of 1.655. So, I predict that after reaching this level it will fall back to the support line.