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
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
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • $EURUSD levels from yesterday's webinar going strong. . . look out here - #Euro 120min https://t.co/x4z1B5tYBm
  • The EC President is being quarantined as he came into contact with a person that had COVID. In turn, looks like the European Council meeting that was scheduled for Thursday/Friday has been delayed a week #EURUSD https://t.co/Y0YzjoMcqA
  • $SPX at a big spot current res from group of prior swing lows ~3296-3309 sup from the prior june high 3232 $ES $SPY https://t.co/iyTsLeQQx4
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.14% 🇯🇵JPY: -0.29% 🇳🇿NZD: -0.41% 🇨🇭CHF: -0.50% 🇦🇺AUD: -0.55% 🇬🇧GBP: -0.64% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4r2O1Puovi
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.23% FTSE 100: 1.03% France 40: 0.61% US 500: 0.24% Wall Street: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rgsStCX1Si
  • $EURUSD Outlook - via @DailyFX: - Euro extends its slide after breaching 50DMA - EUR/USD hitting fresh monthly lows as volatility rises - EUR now tests a critical support level around 1.1700 Link to Full Analysis: https://www.dailyfx.com/forex/market_alert/2020/09/22/eur-usd-price-outlook-euro-extends-slide-to-probe-support-zone.html #FX #Forex #Trading https://t.co/mPgHsRKIAk
  • What is seasonal change in volatility. Are we going through one right now? Find out: https://t.co/G0qfpOmMl2 https://t.co/CFeAHvbFYB
  • Coming up on Fed Chair Powell's testimony. I doubt it will be a complacent, rosy outlook from the central banker. What kind of state are the markets in to receive a dose of cold reality?
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.91% Gold: 0.06% Silver: -1.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/e9DSxPTBLA
  • Heads Up:🇺🇸 Fed Chair Powell Testimony due at 14:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-22
Sterling Weekly Price Outlook: GBP/USD Recovery Faces Moment of Truth

Sterling Weekly Price Outlook: GBP/USD Recovery Faces Moment of Truth

2019-01-15 18:04:00
Michael Boutros, Strategist
Share:

In this series we scale-back and look at the broader technical picture to gain a bit more perspective on where we are in trend. The British Pound has rallied more than 3% off fresh yearly lows since the start of the year with the recovery failing this week just ahead of multi-month slope resistance. Here are the key targets & invalidation levels that matter on the GBP/USD weekly chart. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

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

GBP/USD Weekly Price Chart

GBP/USD Weekly Price Chart

Notes: Sterling has been trading within the confines of a descending pitchfork formation extending off the 2018 highs with price rebounding sharply off confluence support into the close of the year at 1.2433/69- a region defined by the 78.6% retracement of the 2016 advance and the post-Brexit low- week close.

The advance turned just ahead of critical resistance this week at 1.2945/72 where the 61.8% retracement of the September decline, the October trendline, and the upper parallel of the pitchfork. A breach / close above this threshold is needed to validate that a more significant low was registered earlier in the month with such a scenario targeting the 38.2% retracement of the 2018 decline at 1.3181.

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

Bottom line: The British Pound is losing steam just ahead of broader down-trend resistance and leaves the immediate recovery at risk while below 1.2972. From a trading standpoint, the immediate threat may be lower but IF Cable has turned, losses should not surpass the low-week close at 1.2721- weakness beyond this level would expose the 2018 low-close at 1.2582 backed by 1.2433/69.

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-short GBP/USD - the ratio stands at -1.01 (-49.8% of traders are long) – neutral reading
  • Long positions are 0.2% higher than yesterday and 0.5% lower from last week
  • Short positions are 7.6% higher than yesterday and 13.4% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bullish contrarian trading bias.

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

Previous Weekly Technical Charts

Learn how to Trade with Confidence in our Free Trading Guide

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

Follow Michael on Twitter @MBForex

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

DISCLOSURES