Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

GBP/USD Forex Signal: Wedge, Death Cross Points To a Drop to 1.2600

By Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

Bearish View

  • Sell the GBP/USD pair and set a take-profit at 1.2600.
  • Add a stop-loss at 1.2900.
  • Timeline: 1-2 days.

Bullish View

  • Buy the GBP/USD pair and set a take-profit at 1.2900.
  • Add a stop-loss at 1.2600.

GBP/USD Signal Today -11/12: Wedge Signals Drop (Chart)

The GBP/USD pair remained in a tight range on Wednesday morning as traders waited for the upcoming US inflation data. It was trading at 1.2750, where it has been stuck at in the last two days.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

The most important GBP/USD news of this week will come out when the Bureau of Labor Statistics (BLS) releases the latest consumer price index (CPI) data.

These numbers will provide more information about prices changes in the United States. Economists polled by Reuters expect the data to show that prices remained elevated in November.

The median estimate is that the headline CPI rose from 0.2% in October to 0.3% in September. Analysts also expect the annual figure to move from 2.6% to 2.7%, a sign that prices are moving in the wrong direction. It will be the second consecutive month of gains.

Core inflation, which excludes the volatile food and energy prices, is expected to come in at 3.3%, much higher than the Fed’s 2% target. Still, Fed officials who have talked recently have maintained their confidence that inflation was on a path to 2.0%.

Therefore, most of them have supported a 0.25% rate cut in the coming meeting, a move that will bring the year-to-date cuts to 1%.

The other key GBP/USD data to watch this week will be a data dump from the UK that will come out on Friday. That report will likely show that the economy expanded by 0.1% in October after contracting by 0.1% in the previous month.

All these numbers will help the Federal Reserve and the Bank of England when making their decisions next week.

GBP/USD Technical Analysis

The daily chart shows that the GBP/USD exchange rate remained under pressure in the past few months. It has moved below the key support at 1.2898, its highest swing in March this year.

The pair is also about to form a death cross pattern as the 50-day and 200-day Exponential Moving Averages cross each other. Also, it has formed a rising wedge pattern, a popular bearish sign.

The Relative Strength Index has faced resistance at the neutral point at 50. Therefore, there is a likelihood that it will drop to the next point at 1.2600, which coincides with the ascending trendline that connects the lowest swings since November last year.

Ready to trade our free trading signals? We’ve made a list of the best UK forex brokers worth using.

Crispus Nyaga
Crispus Nyaga is a financial analyst, coach, and trader with more than 8 years in the industry. He has worked for leading companies like ATFX, easyMarkets, and OctaFx. Further, he has published widely in platforms like SeekingAlpha, Investing Cube, Capital.com, and Invezz. In his free time, he likes watching golf and spending time with his wife and child.

Most Visited Forex Broker Reviews