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
GBP/USD
Bearish
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
GBP/USD Breakout Faces First Hurdle- Bullish Above November Open

GBP/USD Breakout Faces First Hurdle- Bullish Above November Open

2017-11-29 16:30:00
Michael Boutros, Technical Strategist
Share:

To receive Michael’s analysis directly via email, please SIGN UP HERE

GBP/USD Daily Chart

GBP/USD Price Chart - Daily Timeframe

Technical Outlook: I’ve been tracking this advance in the British Pound in the Weekly Technical Perspective for months now with Cable setting the November opening range just above slope support extending off the yearly lows. Earlier this month we highlighted that a breakout was imminent as prices continued to consolidate above this threshold.

The subsequent breach above the monthly open / opening-range highs on 9/22 validated the reversal with prices now eyeing near-term resistance targets at 1.3417 and 1.3482/95. This region is defined by the yearly high-day close and the 50% retracement of the 2016 decline – a breach / close above would be needed to mark resumption of the broader up-trend. Broader bullish invalidation now raised from 1.3020 to ~1.3155 where the 100-day moving average converges on the lower parallel.

New to Forex? Get started with this Free Beginners Guide

GBP/USD 240min Chart

GBP/USD Price Chart - 240min Timeframe

Notes: A closer look at price action shows the pair continuing to trade within the confines of a well-defined ascending channel formation with the upper parallel converging on the 61.8% retracement today at 1.3417. Note that cable is marking slight momentum divergence into these highs and while the monthly opening range break has us looking for a late-month high, we’re heading into the close tomorrow- use caution. The immediate advance may be vulnerable here but the near-term focus remains higher while above the monthly open at 1.3283.

Bottom line: I’ll favor fading weakness while within this formation with a breach above 1.3495 needed fuel the next leg higher in Cable targeting subsequent topside resistance objectives at 1.3543 and the 2017 high / Brexit gap at 1.3658/75. Keep in mind we still have the U.S. Core Personal Consumption Expenditure (PCE) and ISM Manufacturing / Employment on tap into the close of the week.

Join Michael on Friday for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!

GBP/USD IG Client Sentiment
  • A summary of IG Client Sentimentshows traders are net-short GBPUSD- the ratio stands at -1.3 (43.5% of traders are long) –weak bullish reading
  • Retail has remained net-short since Nov 21st - price has moved 0.7% higher since then
  • Long positions are 0.2% higher than yesterday and 11.2% lower from last week
  • Short positions are 7.4% lower than yesterday and 8.2% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBPUSD prices may continue to rise. However, retail is less net-short than yesterday but more net-short from last week and the combination of current positioning and recent changes gives us a further mixed GBPUSD trading bias from a sentiment standpoint.

See how shifts in GBP/USD retail positioning are impacting trend- Click here to learn more about sentiment!

---

Relevant Data Releases

GBP/USD Economic Calendar

Why does the average trader lose? Avoid these Mistakes in your trading

Other Setups in Play

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.