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.

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
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.88%, while traders in NZD/USD are at opposite extremes with 70.65%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/N3lFhLUE67
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/ZJOEtpGUIq https://t.co/mqU8ND0BqU
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.41% 🇨🇦CAD: 0.36% 🇯🇵JPY: 0.20% 🇦🇺AUD: 0.16% 🇪🇺EUR: 0.16% 🇨🇭CHF: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/sCW4DtQP6y
  • Heads Up:🇺🇸 Durable Goods Orders Ex Transp MoM (SEP) due at 12:30 GMT (15min) Expected: 0.4% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2020-10-27
  • Heads Up:🇺🇸 Durable Goods Orders MoM (SEP) due at 12:30 GMT (15min) Expected: 0.5% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2020-10-27
  • White House spokeswoman says administration is confident that it can reach COVID aid package in coming weeks - Fox News
  • 🇲🇽 Balance of Trade (SEP) Actual: $4.385B Expected: $3.795B Previous: $6.116B https://www.dailyfx.com/economic-calendar#2020-10-27
  • Heads Up:🇲🇽 Balance of Trade (SEP) due at 12:00 GMT (15min) Expected: $3.795B Previous: $6.116B https://www.dailyfx.com/economic-calendar#2020-10-27
  • EU Commission says both the EU and UK are engaging intensively to reach a deal $GBP
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/kERhNpX24T
GBP/USD Bounces From Daily Lows. Can a rebound last?

GBP/USD Bounces From Daily Lows. Can a rebound last?

2016-10-25 18:15:00
Walker England, Forex Trading Instructor
Share:

Talking Points:

The GBP/USD is currently rebounding this afternoon, trading off of the lows of the day at 1.2081. This morning’s move saw the pair decline as much as 160 pips and test the Cables previous swing low at 1.2087. Now, with the pair rebounding, traders are looking to see if the GBP/USD may remain supported or if the Cable is prepared to drop down and trade towards a new lower low.

GBP/USD 1 Day, Rebound

GBP/USD Bounces From Daily Lows. Can a rebound last?

(Created using TradingView Charts)

As prices rebound off of daily lows, traders may look to short term momentum cues to help decipher the GBP/USD’s next move. Using the 5-minute graph below, the Grid Sight Index (GSI) has identified a short term downtrend forming, as the pair has lower off of the most recent swing high at 1.2205. After reviewing 94,120,441 pricing points, GSI has also indicated that price action has continued to decline by 15 pips or more in 64% of the reported 253 matching historical events. This places the first bearish historical distribution point at a price of 1.2156. A move to this value may indicate a return towards bearish momentum and open the pair to test the next short term swing low at 1.2147 as well as daily low of 1.2081

Alternatively, GSI has indicated that prices have increased by 31 pips or more in 40% of the identified historical instances. This places the first bullish historical distribution at a price of 1.2202. A move through this point would indicate a continuation of this afternoon’s bullish reversal. If prices continue to rise, it opens up the possibility that the pair may attempt to trade back towards this morning’s open of 1.2237. It should be noted that the final bullish distribution below is displayed at a price of 1.2247. A move above this point may suggest a larger retracement or reversal is in play for the pair.

GBP/USD Bounces From Daily Lows. Can a rebound last?

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

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

DISCLOSURES