03/01/23 Daily Currency Strength Analysis: GBPUSD and GBPJPY Both Show Weakness

Tues 3rd January 2023

Today, Our Daily Currency Strength Weakness Video will focus on:

• GBPUSD
• GBPJPY

Charts Provided by Charles Clifton

Daily Analysis By Jon Kibbler

GBPUSD & GBPJPY Show Weakness

In today’s currency strength video we identified that GBP is W1 on the trend tables and the USD is S2.

The GBPUSD has rallied higher since forming a low in September 2022. This has largely been driven by the USD weakness in the market.

However, the tables are showing a change that could see GBPUSD trade lower. 

Last months candle closed within last months range and as a high test showing that the buyers had faded and sellers had emerged. 

Will this tell us that price is heading lower?

Technical Observations

• The GBP is W1 on the trend tables and the USD is S2.
• The monthly close suggests price may move lower towards 1.1500.
• Price has traded through a long term trendline which formed from the low in October.
• Since price found the highs at 1.2400 price has traded through multiple support zones.
• Including the recent consolidation that rested above the 1.2000 level. 
• Trend and Day traders may want to wait for a retest of this consolidation before looking for entry ideas.