GBP/USD

GBP 50 Year Averages and Week Trade Targets

From 1972 – 1984, GBP/USD traded 2.6110 to 1.3075 lows in August 1984 or 1300 pips and a mid rate at 1.9592.

From 1984 -1996, GBP/USD traded 2.0105 highs in September 1992 and 1.0790 lows in February 1985 or 9315 pips and a mid rate at 1.5447. The unusually large pip movements is attributed to the September 1985 Plaza and February 1987 Louvre Accords The Plaza Accords allowed USD depreciation while the Louvre Accords sought to stop USD’s decline.

From 1996 – 2008, GBP/USD traded highs at 2.1162 in November 2007 and 1.3679 lows in January 2001 or 7483 pips and a mid rate at 1.7420.

From 2008 -2021, GBP/USD traded highs at 1.9844 August 2008 to 1.1981 lows January 2017 or 7863 pips and a mid rate at 1.5912.

From 2019 to 2021 and 1.1986 lows to current 1.4035 highs, GBP/USD traveled 2049 pips or 1025 pips per year to a mid rate at 1.3010 or close to the current 5 year average at 1.3069.

From the 50 year period at 2.6110 highs to 1.0790 lows, a mid rate exists at 1.8450. GBP/USD historically from current 1.3998 remains quite low however not only is GBP/USD and GBP cross pairs massively overbought but vital levels now approaches.

5, 10 and 14 year Averages

Current GBP/USD trades 1368 pips between 5 and 10 year averages from 1.3069 to 1.4437. Prior to 1.4437 exists a huge line at exactly 1.4300. Above 1.4437 exist 1.5254 at the 14 year average or 817 pips. Historically, its impossible for a currency price to exist within a 10 and 14 year average due to compressed ranges as a massive breakout move always occurrs.

Below exists 4 massive support lines at 1.3832, 1.3753, 1.3684 and 1.3609. A break of 1.3609 is required not only for a much lower GBP but a massive 540 pip trade range.

Not only is GBP/USD against 1.4300 and 1.4437 but GBP/JPY approaches its 10 year average at 148.30 and currently trades between 5 and 10 year averages from 142.39 to 148.30 or 591 pips. GP/USD trades 1368 pips between 5 and 10 year averages while GBP/JPY trades 591 and less than 1/2 GBP/USD.

EUR/GBP from current 0.8647 trades between 5 and 10 year averages from 0.8729 to 0.8414 or 313 pips. GBP/EUR from current 1.1564 trades between 5 and 10 year averages from 1.1472 to 1.1937. GBP/USD breaks lower when EUR/GBP trades above 0.8729.

For the week, trade instruction is short anywhere and for any GBP currency pair however GBP/USD targets 1.3750 . At 1.3750, GBP/USD remains deeply overbought. No thrills and caution to GBP/NZD.

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