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
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
Bearish
Gold
Bullish
GBP/USD
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
USD/JPY
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
More View more
Real Time News
  • WTI crude oil prices fell for a second day to US$ 38.80, marking a two-day decline of 4.6%. The selloff pressure was primarily due to a rapid rise in global coronavirus infections and dwindling hopes for a US relief package before the US election. https://t.co/ZYgNr3B3BH
  • 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/38gTDn8ejP https://t.co/fqwM6tbGfe
  • The US has registered 59,691 new coronavirus cases on October 25th, marking a decline for the second day after hitting a record on 23rd. Yet risk assets appear to be vulnerable to further pullback should coronavirus cases continue to climb around the globe. https://t.co/jcXzNDYhoD
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/parnPmQwIj
  • Market Update Broad risk-on tilt seen in APAC trade Risk-sensitive $AUDUSD moving higher alongside #crudeoil prices and #SP500 futures Haven-linked $USD and $JPY sliding lower against their major counterparts
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.83% Oil - US Crude: 0.43% Gold: 0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/T7ZsigkoyK
  • The Australian Dollar didn’t appreciate fading Chinese industrial profits as roadblocks risk undermining global growth recovery bets. Will $AUDUSD fall on bearish technical cues ahead? - https://www.dailyfx.com/forex/market_alert/2020/10/27/AUDUSD-Forecast-Chinese-Industrial-Profits-Flash-Global-Growth-Warning.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/kIpo2YmhtL
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.18% 🇳🇿NZD: 0.15% 🇦🇺AUD: 0.14% 🇪🇺EUR: 0.12% 🇯🇵JPY: 0.08% 🇬🇧GBP: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Z29nLln3RK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.97%, while traders in NZD/USD are at opposite extremes with 73.04%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SHUgfk845A
  • Join @ZabelinDimitri 's #webinar at 10:30 PM ET/2:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/50VsGSFACG
GBP/USD Price Outlook: Sterling Trade Levels for the Pending Breakout

GBP/USD Price Outlook: Sterling Trade Levels for the Pending Breakout

2018-10-09 16:30:00
Michael Boutros, Strategist
Share:

The British Pound recovered off the August support line with prices now threatening yearly down-slope resistance early into the start of October / 4Q trade. Here are the updated targets and invalidation levels that matter on the GBP/USD charts this week. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

GBP/USD Daily Price Chart

GBP/USD Price Chart - Daily

Technical Outlook: We’ve been tracking this descending pitchfork in GBP/USD for months now with false-break of the lower parallel last week charging a recovery back above the median-line. Note that daily RSI held above 40 on the most recent pullback and keeps momentum on the side of the bulls for now. Initial resistance stands at the 61.8% retracement at 1.3155 with a breach / close above the 38.2% slope line needed to keep the long-bias in play.

Daily support rests with the monthly open at 1.3031 and is backed closely by trendline confluence around the 1.30-handle. Ultimately a break below the 1.2877-1.2905 support zone would be needed to mark resumption of the broader downtrend.

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 price action highlights the August trendline (red) and keeps our near-term focus weighted to the topside while above 1.30. Initial resistance targets are eyed at 1.3122 and targets 1.3155/65- a breach there is needed to fuel the next leg higher with such a scenario targeting 1.3213 and more significant resistance at 1.3290-1.3302.

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

Bottom line:The British Pound has set its weekly / monthly opening-range just below slope resistance and we’re looking for a breakout of the 1.29-1.3165 zone to validate our medium-term outlook. From a trading standpoint, I’ll favor fading weakness in Sterling while above 1.30 targeting a breach above daily slope resistance.

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

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 +2.0 (66.7% of traders are long) – bearishreading
  • Traders have remained net-long since September 20th; price has moved 0.6% lower since then
  • Long positions are1.8% lower than yesterday and 5.0% higher from last week
  • Short positions are 1.0% lower than yesterday and 8.5% 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. That said, traders are less net-long than yesterday but more net-long from last week and the combination of current positioning and recent changes gives us a further mixed GBP/USD trading bias from a sentiment standpoint.

See how shifts in GBP/USD retail positioning are impacting trend- Learn more about sentiment!

---

Relevant GBP/USD Economic Data Releases

GBP/USD Economic Calendar

Economic Calendar - latest economic developments and upcoming event risk. Learn more about how we Trade the News in our Free Guide!

Active Trade Setups

- 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