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
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
Oil - US Crude
Mixed
Wall Street
Bearish
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
GBP/USD
Mixed
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
More View more
Real Time News
  • While the Dollar's tumble is one of the more impressive moves in the broader markets at the moment - its run is bearish. Its bullish counterpoint was the Aussie Dollar. Impressive move across board, but $AUDJPY's 2-day rally is biggest since July 2016 https://t.co/YtpXVs3bKP
  • Gold currently trades around $1,740/oz. and looks set to push higher if the sell-off in the US dollar continues. Get your $gld technical analysis from @nickcawley1 here:https://t.co/oFwLhi2XB8 https://t.co/nFQcplaexS
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.25% Gold: -0.81% Silver: -1.73% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/IKRKgZf2ha
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.98%, while traders in US 500 are at opposite extremes with 72.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Q4CoU5iGAD
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.72% US 500: 0.50% Germany 30: 0.39% France 40: 0.37% FTSE 100: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/r0ZOaGGpwp
  • US tech stocks turn positive in afternoon trading, following the Dow Jones and SP500 into positive territory https://t.co/stt1JvXAaH
  • Update on #Cryptocurrencies #BITCOIN -0.91% #BITCOINCASH +1.48% #ETHEREUM -1.58% #RIPPLE -1.35% #LITECOIN -2.48%
  • $AUDUSD pushes further into multi-month highs this morning as risk appetite improves https://t.co/jCjpOT2kbP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.98%, while traders in US 500 are at opposite extremes with 73.36%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ZZhiVDU0Ey
  • The #Euro Stoxx 50 has made a firm break away from its 50% fib retracement to trade at its highest level since early March. Get your equities market update from @JMcQueenFX here:https://t.co/TeIdfHjbUj https://t.co/IPSBuPQ3YF
GBP/USD Coils Below Key Resistance- Bullish Invalidation 1.3920

GBP/USD Coils Below Key Resistance- Bullish Invalidation 1.3920

2016-03-09 20:48:00
Michael Boutros, Strategist
Share:

Talking Points

  • GBP/USD Weekly opening range break to validate bias
  • Major resistance confluence at 1.4250
  • Updated targets & invalidation levels

GBPUSD Daily

GBP/USD Coils Below Key Resistance- Bullish Invalidation 1.3920

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: Cable is testing a critical resistance confluence around ~1.4250 where the median-line extending off the May 2015 high converges on basic trendline resistance, the 50% retracement of the February decline and a sliding parallel extending off the late-September low. The immediate long bias is at risk here and we’ll be looking for a pullback into support or a breach & re-test to offer favorable long-scalp entries. Key support and broader bullish invalidation rests at confluence of the 88.6% retracement and the 2016 low-day close at 1.3911/21.

Note that sterling marked some pretty strong bullish divergence into the lows last month with a resistance trigger-break shifting the near-term momentum profile to the topside. RSI is now holding just below the 50-threshold and we’ll be looking for a breach to validate the breakout with subsequent topside resistance objectives eyed at the 61.8% retracement at 1.4350 and the February 19th uncovered-close at 1.4399. Key resistance stands at 1.4635/71.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.

GBPUSD 30min

GBP/USD Coils Below Key Resistance- Bullish Invalidation 1.3920

Notes: The weekly opening-range is taking shape just below resistance and we’ll be looking for the break to validate our near-term directional bias. Interim support rests at 1.4177 backed by the 38.2% retracement / weekly opening range low at 1.4111/33. A break there shifts the focus lower towards objectives at 1.4059 & the 1.40-handle where we would ulimately be back on the lookout for long-triggers.

A breach of confluence resistance eyes subsequent resistance targets at 1.4350, 1.4399 & 1.4471. A quarter of the daily average true range (ATR) yields profit targets of 36-40 pips per scalp. Inlight of the recent BoE testimony regarding the EU-membership, the sterling remains at risk of additional headwinds as the central bank looks poised to sit on the sidelines atleast until the UK referrendum in June. That said, we’ll be looking for a definitive reaction to this near-term consolidation to clear the way with our general medium-term outlook weighted to the topside while above 1.3911.

Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

Check out SSI to see how retail crowds are positioned as well as open interest heading into February trade.

Relevant Data Releases

GBP/USD Coils Below Key Resistance- Bullish Invalidation 1.3920

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

Looking for trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

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

DISCLOSURES

News & Analysis at your fingertips.