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
More View more
Real Time News
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/otJwnuR7qe
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/s4lZWdJoXV
  • The US Dollar Index traded higher last week, sustaining its broader uptrend. Conflicting technical signals urge caution, but the directional bias remains skewed to the upside. Get your weekly USD technical forecast from @FxWestwater here: https://t.co/jcwhcsUBEN https://t.co/tKrlrRZlZn
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/MGy9OTXpUI
Weekly Technical Perspective on the British Pound (GBP/USD)

Weekly Technical Perspective on the British Pound (GBP/USD)

Michael Boutros, Strategist

In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. The British Pound has continued to trade within a well-defined descending formation with the Bank of England (BoE) interest rate decision and quarterly inflation report on tap tomorrow morning. Here are the key targets & invalidation levels that matter on the GBP/USD weekly chart.

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

GBP/USD Weekly Price Chart

GBP/USD Weekly Price Chart

Notes: We’ve been tracking this descending pitchfork in the British Pound for months now with price continuing to respect the lower boundaries of the formation since late-May. Strong daily divergence into these lows has had us looking for the exhaustion rebound- but they’ve all been short lived. Initial weekly support remains at 1.3027 backed by a more significant confluence zone at 1.2877-1.29- a region defined by the key 61.8% retracement of the 2016 advance and the lower median-line parallel. A break / weekly close below this region risks substantial Sterling losses with such a scenario targeting the 2014 trendline, currently around ~1.26.

That said, look for initial weekly resistance along the 38.2% line of the slope with a breach / close above 1.33 needed to suggest a more significant low is in place – such a scenario targets the 2017 high-week close / 52-week moving average which converge on the upper 38.2% line at ~1.3480/94.

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

Bottom line: Sterling rebounded off down-trend support last month and leaves the broader short-bias vulnerable heading into key confluence support around 1.2877. From a trading standpoint, the risk is lower but I’ll be on the lookout for possible exhaustion / long entries on a stretch into the lower parallel OR a breach & retest of slope resistance as support.

Keep in mind the Bank of England is expected to hike interest rates by 25 basis points tomorrow (already priced in) with US Non-Farm Payrolls (NFP) slated for Friday. I’ll publish an updated GBP/USD scalp report once we get further clarity on near-term price action.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

GBP/USD Trader Sentiment

GBP/USD Trader Sentiment
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD- the ratio stands at +1.95 (66.2% of traders are long) – bearishreading
  • Traders have remained net-long since April 20th; price has moved 6.9% lower since then
  • Long positions are1.4% higher than yesterday and 4.7% lower from last week
  • Short positions are 1.0% lower than yesterday and 8.6% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger GBP/USD-bearish contrarian 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

GBP/USD Economic Calendar

Economic Calendar– for the latest economic developments and upcoming event risk

Previous Weekly Technical Perspectives

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

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

https://www.dailyfx.com/free_guide-tg.html?ref-author=Boutros

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

DISCLOSURES