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Analysis Of British Pound/U.S Dollar Of Last 4 Years – Trading Gyani

Analysis Of British Pound/U.S Dollar

This is a simple analysis of the two currency which is the British Pound and With the U.S Dollar. The price which is mentioned in the blog is the price of the U.S Dollar in exchange for the British Pound. Currently, the price is 1.35 dollars in exchange for 1 British pound which means U.S Dollar is weaker than the British pound. About the history of the British pound then the origin is the Roman Era, the word pound means ‘Weight’. In the early period, the value of the pound is equivalent to 15 Cows and one pound of silver. Isaac Newton first valued the British Pound in exchange for gold like to buy one ounce of Gold (31 Gram Gold) a buyer has to pay 4.25 British pounds. After the U.K government Suspend the measure of gold in exchange with British Pound and the first time set a standard in exchange with U.S Dollar, 1 Pound = 4.7 dollars. As years goes the prices change like in 1925 £1 = $4.86, in 1931 £1 = $3.69, in 1934 £1 = $5, in 1940 £1 = $4.03, in 1967 £1 = $2.40, in 1976 £1 = $1.7, in 1979 £1 = $2, in 1985 £1 = $1.2, in 1992 £1 = $1.5, in 2001 £1 = $1.4, in 2008 £1 = $1.4 and in 2016 £1 = $1.33. The demand for the U.S Dollar increase because of that the price of this exchange falls. Over the period America grows and the American Dollar (U.S Dollar) also grows. In this analysis, the word “Upward” Or “Bullish” means the rate or demand of the U.S Dollar decrease which results in an increase in the rate of the British pound, and the word “Downward” Or “Bearish” means the rate or demand of the U.S Dollar increase in result the decrease in the exchange rate of British Pound. Any suggestion or advice given in this blog follow at your own risk, tradinggyani is not responsible for any losses and damage.

Analysis Of British Pound/U.S Dollar


1st month of this year forms a strong bearish candle, this bearish candle is because in the past years there was a bearish rally that consolidate or goes sideways in this year. The 2nd-month candle is bullish and the 3rd-month candle again forms a strong bearish candle that reaches to support level. How the price reacts at the support level that reaction is seen here also, in 4th month a long strong bullish candle forms. In 5th month a Doji candle forms and again in 6th-month a bullish candle forms because of a strong support level. But this moment can’t be long because as mentioned currency is in a bearish trend, so the price again moves toward the support level and makes an effort to break. 7th, 8th, 9th, 10th, and 11th months consecutive form a bearish candle and again reach the previous support level. The 12th month also forms a bearish candle but slightly breaks the level of support, the reaction of this candle can be seen in the next year.


In previous years, the price already breaks the support level and their next moment is seen this year. The 1st month’s candle forms a long & strong bearish candle which ensures the bearish momentum and the 2nd month also forms a bearish candle. But in the 3rd and 4th months, the candles are bullish and that candle reaches the previous support zone which is now the resistance zone. After two bullish candles, the price reach the previous support zone and in 5th month a Doji candle formed. This structure is necessary because it perfectly looks like that price is taking a retest, retest/consolidation/pull back ensures the strength of the moment. So, the retest is taken and the 6th candle forms a very long bearish candle of 11%. That’s the power of retesting and the 7th, 8th,9th, and 10th month also forms a bearish candle. In total after taking a retest, the price falls by 17% from 1.47 to 1.22 Dollars. In the last two months, the price consolidate and was unable to break the low of the 10th-month candle. Both candle forms are unable to break the high as well as the low of the 10th-month candle which indicates the end of the bearish momentum.


As we see the bearish momentum already ended and the price is also unable to break previous lows. The 1st-month candle is also unable to break any high or low, the 2nd month is also unable to break the high and low of the 10th-month candle of 2016, and the 3rd also fails to break the previous high and low. This simply indicates the price is in the consolidation or sideways zone which is from 1.29335 to 1.22293. The 4th-month candle is a bullish candle that reaches the high of the 10th-month candle of 2016, but it is unable to break the high. In the 5th month, a Doji candle forms and the 6th-month candle breaks the high with a bullish pin bar candle. The price takes 7 months in total to break the previous high and low, which is a strong consolidation. The high is already broken and the 7th month forms a bullish candle. The 8th month forms a bearish candle after that rest of the 4 months continuously grow by 8%.

Chart Of The Year 2017


As we see the market is in a bullish trend and following that bullish trend the 1st-month candle is a long bullish candle. In this bullish trend, the price total grows by 11%, but the next three month fails to break the high of the 1st month. 2nd, 3rd, and 4th months consolidated between the price level of 1.41845 to 1.37288. 5th month breaks the low of 1st month’s candle and from there till the last month, the bearish moment continues. This moment is uncertain, there is no resistance level and also price reversal, and the bearish trend started. From the 2nd  month to the 12th month the price falls by 11%.

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