GBPUSD Short-Term Analysis – 01 February 2022
GBPUSD daily threatens to move out of its weak area, between the lower blue and red bands, and into the neutral zone (blue arrow). The red bands have expanded with the currency pair's downside swing (green rectangles). We note that yesterday saw a long blue candle, with follow-through today. Given the increase in volatility from the broader downside move, this rally may provide an opportunity. To this end, we regard the GBPUSD hourly chart on the right. The BoE is expected to raise its official bank rate by 25bps to 50bps on Thursday; GBPUSD supportive. However, the RSI is near the overbought area (green rectangle on the righthand bottom chart). Moreover, the price has approached the R2 pivot resistance given this potential overbought condition. If this acts as a reaction level, the trend-following indicators and hourly stochastic (black ellipses) will need to turn down as a signal of weakness.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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