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
Bullish
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
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
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
Gold
Bullish
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • webinar time... https://www.dailyfx.com/webinars/455809179 topics up for discussion today: 1) USD - do something 2) Stocks supported on stimulus hopes 3) Crosses cleaning up a bit? starting right meow https://www.dailyfx.com/webinars/455809179 https://t.co/zj9XN14BDv
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.82%, while traders in EUR/USD are at opposite extremes with 72.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/qMPdBfUArS
  • Heads Up:🇺🇸 Fed Evans Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-20
  • House Speaker Nancy Pelosi: -Optimistic for stimulus deal -Trump administration has come a long way toward reaching an agreement -Want to crush the virus -Need to improve health care language on stimulus bill -Will speak with Treasury Secretary Steven Mnuchin today at 3PM ET
  • Netflix earnings is due after the close today. Despite its being a vaunted FAANG member, I think it will draw less attention than tomorrow's Tesla update which has worked its way even higher into the speculative echelon. Personally, I put more on CSX as a reflection of economy.
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 1.27% Oil - US Crude: 0.31% Gold: 0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/pLRpke3JAJ
  • The bull market in gold has been in correction mode since it peaked in early August, and while it appears is a healthy retracement at this juncture, it is unclear just how much longer it will last. Get your $XAUUSD technical analysis from @PaulRobinsonFX :https://t.co/5etzhvsLuC https://t.co/aE7SaPPwih
  • $SPX bull flag + 38.2 retrace of the sep-oct major move $SPY $ES https://t.co/NbehE85NQc
  • Hey traders! Get your Tuesday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/x2Db7s11Cz
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.53% 🇪🇺EUR: 0.49% 🇨🇭CHF: 0.34% 🇯🇵JPY: -0.13% 🇦🇺AUD: -0.17% 🇳🇿NZD: -0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Yql52APvbV
Sterling Price Chart: British Pound Testing Post-Brexit Support

Sterling Price Chart: British Pound Testing Post-Brexit Support

2019-07-18 15:30:00
Michael Boutros, Strategist
Share:

The British Pound is down near 0.75% against the US Dollar this week with Sterling testing a major support confluence just below the January lows. These are the updated targets and invalidation levels that matter on the GBP/USD weekly price chart. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this gold price setup and more.

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

GBP/USD Price Chart - Sterling Weekly

GBP/USD Price Chart - Sterling Weekly - British Pound vs US Dollar Technical Outlook

Notes: In my last GBP/USD Price Outlook we highlighted that, “Sterling has preserved the monthly opening-range heading into the final days of June with price failing today at yearly open resistance. From a trading standpoint, the risk is for correction off this threshold – watch today’s close, an outside-day reversal would further highlight the near-term threat for a move lower in the British Pound.” A break below the June range-lows early in the month has seen Cable drop to two-year lows with price now testing a key support confluence.

The zone in focus is 1.2374-1.2433 – a region defined by the 2016 post-Brexit low-week close and the 2017 low-week close. Note that channel support also converges on this threshold and further highlights its technical significance. A break / weekly close below would expose subsequent support objectives at the 61.8% extension at 1.2185. Monthly open resistance stands at 1.2695 with broader bearish invalidation steady at 1.2754/64 (critical) where the objective 2019 open converges on the 38.2% retracementof the yearly range – a breach there would shift the focus towards the February low-week close at 1.2888.

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

Bottom line: Sterling is a testing a critical support zone this week and from a technical standpoint, leaves the broader short-bias at risk while above 1.2374. From a trading standpoint, a good spot to reduce short exposure / lower protective stops. Be on the lookout for downside exhaustion here – I’ll publish an updated Sterling Price Outlook once we get further clarity in near-term GBP/USD price action.

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

Sterling Trader Sentiment (GBP/USD)

GBP/USD Trader Sentiment - Sterling Price Chart - GBP/USD Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD - the ratio stands at +3.57 (78.1% of traders are long) – bearish reading
  • Traders have remained net-long since May 6th; price has moved 3.3% lower since then
  • Long positions are 7.8% lower than yesterday and 5.8% lower from last week
  • Short positions are 3.5% lower than yesterday and 19.4% higher 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. Yet traders are less net-long than yesterday & compared with last week and the recent changes in sentiment warn that the current GBP/USD price trend may soon reverse higher - despite the fact traders remain net-long.

See how shifts in Sterling retail positioning are impacting trend- Learn more about sentiment!

---

Key UK / US Data Releases

GBP/USD Economic Calendar - UK US Key Data Releases

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