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.

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
Wall Street
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
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
GBP/USD Technical Outlook: Sterling Rebound Eyes Initial Resistance

GBP/USD Technical Outlook: Sterling Rebound Eyes Initial Resistance

Michael Boutros, Strategist

The British Pound has rallied nearly 2% off the May lows with the advance now approaching initial topside resistance targets. The focus remains on a stretch into yearly open resistance with a breach there needed to suggest a more significant low is in place. Here are the GBP/USD levels that matter heading into the close of the week.

GBP/USD Daily Price Chart

GBP/USD Price Chart - Daily Timeframe

Technical Outlook: In this week’s British Pound Technical Perspective, we highlighted a structural support range in GBP/USD while noting that, “IF Sterling is going to bounce near-term, this would be a good spot.” The reversal off slope support has gathered pace mid-week with the pair testing slope resistance today in New York.

Key resistance stands just higher at 1.3464 & 1.3495-1.3504 – both areas of interest for possible near-term exhaustion / short-entries. Key support remains at 1.3182-1.3225 where the August high-close and the 50% retracement converge on the lower median-line parallel. A break below this level would likely see accelerated losses with such a scenario targeting support objectives at 1.3036 backed by the 1.29-handle.

New to Forex Trading? Get started with this Free Beginners Guide

GBP/USD 240min Price Chart

GBP/USD Price Chart - 240min

Notes: A closer look at Sterling price action sees what could be a bear flag in the works off the May lows with initial resistance targets eyed at 1.3450 backed by 1.3495-1.3504. That said, given the technical considerations made earlier in the week on the US Dollar, we’ll respect a daily close above this threshold with such a scenario targeting the 2017 high close at 1.3589 backed by more significant resistance at 1.3651/75.

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

Bottom line: IF the Pound has put in a low, look for support to hold at the weekly open at 1.3345 with our bullish invalidation level at 1.3302- a break below this level would shift the focus back toward confluence support at 1.3182. From trading standpoint, the focus is still higher but we’re looking for a reaction on a stretch into near-term resistance for further guidance.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

GBP/USD IG Client Positioning

GBP/USD Client Sentiment
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD- the ratio stands at -2.28 (69.5% of traders are long) –bearishreading
  • Retail traders have remained net-long since Apr 20th; price has moved 5.8% lower since then
  • Long positions are 8.0% lower than yesterday and 1.4% lower from last week
  • Short positions are 4.3% higher than yesterday and 1.9% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD prices may continue to fall. However, positioning is less net-long than yesterday but more net-long from last week andthe 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- Learn more about sentiment!

---

Relevant GBP/USD Data Releases

Economic Calendar - latest economic developments and upcoming event risk

GBP/USD Economic Calendar

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