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
Subscribe
Please try again
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
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • ECB President Lagarde: - An ambitious and coordinated fiscal stance is critical - Fiscal measures should be targeted and temporary - EU aid package must become operational without delay #ECB $EUR
  • ECB President Lagarde: - Risks surrounding Euro-area outlook remain tilted to the downside, but less pronounced - Underlying price pressures are expected to remain subdued - Inflation is likely to increase in the coming months as pandemic's impact fades #ECB $EUR
  • ECB's Lagarde - Downside risks to outlook are less pronounced $EUR
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/UqQKBMNuIA
  • ECB President Lagarde: - Resurgence of pandemic has likely led to decline in activity in Q4 2020 - Will also weigh on activity in Q1 2021 - Fiscal policies are supporting households and firms, but consumers are staying cautious #ECB $EUR
  • ECB's Lagarde says will monitor developments in the exchange rate Slight change in tone from previously stating they will "very carefully" monitor FX movements https://t.co/0E6ijpEGM8
  • ECB President Lagarde: - Euro-area economy contracted in the fourth quarter - Uncertainty remains high - ECB is monitoring exchange rate for its impact on inflation - Ready to use all instruments as needed #ECB $EUR
  • ECB President Lagarde: - Inflation remains very low in the context of weak demand and significant slack - Data confirms pronounced near-term impact on economy and protracted weakness in inflation - Ample degree of monetary stimulus is essential #ECB $EUR
  • 🇺🇸 Philadelphia Fed Manufacturing Index (JAN) Actual: 26.5 Expected: 12 Previous: 11.1 https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇨🇦 New Housing Price Index YoY (DEC) Actual: 4.6% Previous: 4.6% https://www.dailyfx.com/economic-calendar#2021-01-21
GBP/USD: UK Employment Game Plan- Constructive Above 1.44

GBP/USD: UK Employment Game Plan- Constructive Above 1.44

Michael Boutros, Strategist

Talking Points

  • GBPUSD 1.44-1.4530 key range in focus ahead of UK Jobs Report
  • Updated targets & invalidation levels
  • Check out FXCM’s Forex Trading Contest!

GBPUSD 30min

GBP/USD: UK Employment Game Plan- Constructive Above 1.44

Chart Created Using FXCM Marketscope 2.0

Technical Outlook:Last week I noted that, “From a trading standpoint, the move off parallel resistance noted last week remains in focus and I would be looking for support heading into the lower median-line parallel (blue)...” Sterling opened the week at this parallel on building divergence and we’ve been tracking this rally on SB Trade Desk since the open. Heading into tomorrow’s U.K. employment releases, the immediate focus remains higher / looking to buy pullbacks while above confluence support at 1.4405 with a break below the weekly open at 1.4346 needed to shift the near-term outlook back to the short-side.

Near-term resistance stands at 1.4528/33- a region defined by last week’s high and the monthly high-day close (that was the day we tested & failed at the 2016 open 1.4730). A breach higher eyes subsequent resistance objectives at the February high-day close at 1.4588-1.46, an area where the near-term rally would start to look vulnerable. We’re also tracking a similar setup in GBPJPY. Keep in mind we also FOMC Minutes tomorrow and UK Retail Sales on Thursday.

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

GBP/USD: UK Employment Game Plan- Constructive Above 1.44
  • A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders remain net long sterling- the ratio stands at just 1.10 (52% of traders are long)- weakbearish reading
  • Yesterday the ratio was 1.27; long positions are 7.6% lower than yesterday and 4.2% below levels seen last week
  • The recent reduction in long exposure suggests the immediate pullback bias remains at risk near-term
  • Open interest is 1.4% lower than yesterday and 0.3% below its monthly average

Why and how do we use the SSI in trading? View our video and download the free indicator here

Relevant Data Releases This Week

GBP/USD: UK Employment Game Plan- Constructive Above 1.44

Other Setups in Play:

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

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

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here 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)

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

DISCLOSURES