We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • #USDCHF pivot points (daily) – S3: 0.9819, S2: 0.9853, S1: 0.9866, R1: 0.9901, R2: 0.9922, R3: 0.9957- https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The #Euro snapped downward to overturn a would-be bullish breakout, signaling that sellers have reclaimed the initiative. Will they follow through this time? Get your market update from @IlyaSpivak here:https://t.co/RdAMU0QFYu https://t.co/inKMNJuyj5
  • En español: ¿Qué es el DAX 30? Guía del trader sobre el #DAX30 #GER30 #trading https://t.co/5ERZBPd4hf https://t.co/00FPI76keU
  • Lowe: Weakness in consumption growth was GDP surprise $AUDUSD
  • ...and despite the surge in volatility last week (over 55% jump from the Nov 26 low to Dec 3 high), the net speculative short futures position barely budged https://t.co/or2EZnslUc
  • Lowe: Confident consumers will spend more, but many people have high debt so spending takes longer $AUD
  • RBA's Lowe: GDP outcome was broadly in line with expectations $AUDUSD
  • The $VIX went through a wild ride this past session. Looks like there is far more uncertainty under the surface than what the SPX itself is showing https://t.co/zDiCZMc12q
  • RT @Fxhedgers: "U.S tariffs on Chinese imports still scheduled to go on Dec 15th, China is preparing for those tariffs to go active." : tra…
  • $AUDJPY may be breaking under a Rising Wedge. Still plenty of event risk this week to drive price action for the sentiment-linked pair (#Fed, #tradewars, #UKelection2019, and more). A daily close under 73.36 could pave the way to revisit October lows - https://www.dailyfx.com/forex/analyst_picks/todays_picks/daniel_dubrovsky/2019/11/07/FX-Trading-Setups-in-AUDJPY-On-US-China-Trade-Talk-Outcomes.html?CHID=9&QPID=917702 https://t.co/EPUOuSqy6V
Pound Noncommittal to Attempts at Reviving a Trend

Pound Noncommittal to Attempts at Reviving a Trend

2010-03-25 14:07:00
John Kicklighter, Chief Currency Strategist
Share:

Considering the fireworks from the dollar and the influence it has had on the euro; it would be reasonable to assume the same cross wind could drive a fundamentally weakened British pound. Indeed, the outlook for the sterling is as unfavorable as the euro's background. From an economic perspective, the United Kingdom is having difficulty establishing a recovery and the nation's fiscal health has deteriorated to the point that rating agencies feel it necessary to warn the market that the nation has moved closer to losing its top credit rating. To further dissuade traders from taking on this risk, the outlook for interest rates is severely stunted as policy makers focus on growth and market stability. Nonetheless, the pound has proven itself quite capable of holding up this past week as underlying risk appetite has held suspiciously resilient throughout. This is a condition that won't last for long however. Eventually, speculative-heavy markets will stall and unwind to work off excess premium; and when it does, the market-wide correlations will target a weakened sterling.

In the meantime, the pound crosses have already retraced significantly from their highs set three to four months ago. That limits the reasonable follow through that could be expected on a historical basis, which prevents me from jumping in early on possible trends. Looking for short-term setups, recent technical levels offer relatively little to work with as congestion has stalled intra range swings and pushed the boundaries of clear patterns. A few pairs that I am simply monitoring at the moment are GBPUSD (looking to see if there is a clear move below 1.4775) and EURGBP (waiting momentum to confirm a break of the 100-day SMA). Outside of sterling exposure, I will remain short EURUSD and AUDUSD. The former was triggered on  yesterday's break; and the stop has been set just above the break level at 1.3450. I have been in the aussie pair for a little longer; and the stop is set just above 0.92. Other orders that I have include a USDJPY long closer to the long-term wedge break at 91.50; and a AUDCAD wedge-breakout position around 0.9240 and 0.9175.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.