Forex Analysis – GBP Pairs – November & December 2022

Our previous GBP Forex analysis click here

Technical Analysis

FOREX ANALYSIS: EURGBP – Possible upside?

EURGBP Forex price action analysis — EURGBP Daily Chart

Price bounced off the horizontal levels at 0.8590, as suggested in our last GBP chart analysis.

EURGBP was indecisive but recent price action has been bullish. Price has formed a short series of higher swing highs and higher swing lows, so the EURGBP may start up-trending. The moving averages confirm this – they are bullish and steady.

Opportunities to go long could exist around the dynamic support of the moving averages, around the trend support area and around the horizontal levels at 0.8600, 0.8525, 0.8350, 0.8275 and 0.8225. A bullish move may be rejected or reverse around the horizontal resistance levels at 0.8850 and 0.8975.

FOREX ANALYSIS: GBPCHF – Possible upside?

Price has been bearish and has swung lower, as suggested in our last GBP Forex analysis.

The GBPCHF is clearly down-trending and is currently in a retrace move. The moving averages are bearish and widening, so the downtrend may continue. Price is looking over-extended on higher time-frames though and price action has created a clear floor for GBPCHF, so the downtrend may be over.

Trading opportunities could exist around the moving averages, around the trend resistance area and around the horizontal levels at 1.0575, 1.1525, 1.1750, 1.2000, 1.2100, 1.2275, 1.2425 and 1.2600.

FOREX ANALYSIS: GBPJPY – Up-trending

As suggested in our previous analysis, GBPJPY was bearish but has since swing higher.

Price continues to uptrend and is currently forming a swing higher. The daily moving averages are bullish and steady, so the uptrend could continue.

Long opportunities may exist around the dynamic support of the moving averages and around the horizontal levels at 168.50, 167.25, 166.50, 160.00, 158.00, 157.00 and 155.00.

FOREX ANALYSIS: GBPUSD – Down-trending

GBPUSD technical analysis — GBPUSD Daily Chart

GBPUSD has been clearly bearish and has swung lower, as suggested in our previous GBP chart analysis.

Price is clearly down-trending – price action has formed a long series of lower swing highs and lower swing lows. The moving averages suggest that the downside direction may continue – they are bearish and steady. The GBPUSD is also down-trending on higher time-frames.

Opportunities to go short could exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 1.1850, 1.2250, 1.2350, 1.2650 and 1.3000. A bearish move may stall or reverse around the horizontal support levels at 1.0950 and 1.0700 and around the diagonal support area.

Fundamental Analysis

Interest Rates

The Bank of England (BOE) have increased it’s official bank rate again. This time by 75bps, so the official rate is now set to 2.25%. This is the 7th consecutive rate hike by the BOE. Further rate hikes are expected.