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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
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
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here:
  • Angola to cut November oil exports to lowest since at least 2008 - Angola exported 1.1mbpd of crude oil in September, according to Refinitiv
  • ECB's Kazaks - The 2% price target will not be met in the medium term - Inflation outlook likely to be revised higher
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:
  • ECB's De Cos says conclusion of FT report is incompatible with ECB guidance $EUR
  • 💶 Inflation Rate YoY Final (AUG) Actual: 3% Expected: 3% Previous: 2.2%
  • 💶 Inflation Rate MoM Final (AUG) Actual: 0.4% Expected: 0.4% Previous: -0.1%
  • 💶 Core Inflation Rate YoY Final (AUG) Actual: 1.6% Expected: 1.6% Previous: 0.7%
  • Heads Up:💶 Inflation Rate YoY Final (AUG) due at 09:00 GMT (15min) Expected: 3% Previous: 2.2%
  • Heads Up:💶 Inflation Rate MoM Final (AUG) due at 09:00 GMT (15min) Expected: 0.4% Previous: -0.1%
GBP/USD Coils Below Key Resistance- Bullish Invalidation 1.3920

GBP/USD Coils Below Key Resistance- Bullish Invalidation 1.3920

Michael Boutros, Strategist

Talking Points

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


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 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.