Skip to content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Gold
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
More View more
GBPUSD Trendline Breakout

GBPUSD Trendline Breakout

Walker England, Forex Trading Instructor

Market Condition: Breakout

Target 1: 1x Bar Extension at 1.5536

Target 2: 2x Bar Extension at 1.5410

Target 3: 50% Retracement at 1.5248

Target 4: 61.8% Retracement at 1.5087

Invalidation: 1.5336

GBPUSD 1Day Chart

GBPUSD Trendline Breakout

(Created using Marketscope2.0 Charts)

Since last week, the GBPUSD has broken out of its inside bar formation, and traveled through its first two targets at 1.5536 and 1.5410. As of yesterday, the pair continues to move lower, and has broken through a daily trendline as seen on the graph above. This breakout adds to the technical case for further GBPUSD weakness. As prices decline, the next values of support can be found using Fibonacci retracements. This would mark next support at the 50% Fibonacci value at 1.5248, and in the event of a further decline at the 61.8% retracement value at 1.5087.

In the event that the market fails to continue its move lower, traders will watch for prices to return inside of the markets previously declining trendline. If price moves back to 1.5332, the current breakout scenario would be considered invalidated. Traders can also use whole number resistance values such as 1.5400 and 1.5500, to help identify any potential market reversals.

To Receive Walkers’ analysis directly via email, pleaseSIGN UP HERE

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

DISCLOSURES