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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.77%, while traders in Wall Street are at opposite extremes with 74.07%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xocIEsnpei
  • Heads Up:🇺🇸 MBA Mortgage Applications (23/JUL) due at 11:00 GMT (15min) Previous: -4% https://www.dailyfx.com/economic-calendar#2021-07-28
  • Bitcoin (BTCUSD) putting in a decent shift and back above $40k - ignoring the 'will they/won't they?' Amazon chatter. #bitcoin #btc @DailyFXTeam Prices via @IGcom https://t.co/jXB2fP11kG
  • Further your forex knowledge and gain informed analyses from industry leaders with our free guides, available today. Download the Q3 guide:https://t.co/7G7pWntiyY https://t.co/IwfNn9HRhM
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.53% Oil - US Crude: 0.29% Gold: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ClrxkIhs94
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.25% 🇨🇭CHF: 0.03% 🇪🇺EUR: -0.03% 🇯🇵JPY: -0.13% 🇳🇿NZD: -0.21% 🇦🇺AUD: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OCHk2MUjOO
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 0.82% FTSE 100: 0.28% Germany 30: 0.19% US 500: 0.18% Wall Street: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Rbdrdjj6kp
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/NPHJ7riOrS
  • USD/JPY IG Client Sentiment: Our data shows traders are now net-long USD/JPY for the first time since Jul 20, 2021 09:00 GMT when USD/JPY traded near 109.86. A contrarian view of crowd sentiment points to USD/JPY weakness. https://www.dailyfx.com/sentiment https://t.co/siqj2GrhF5
  • 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/f5NSF0ih1d
Sterling Price Outlook: British Pound Breakout Trade- GBP/USD Levels

Sterling Price Outlook: British Pound Breakout Trade- GBP/USD Levels

Michael Boutros, Strategist

Sterling Technical Price Outlook: Near-term Trade Levels

  • Sterling technical trade level update – Daily & Intraday Charts
  • GBP/USD near-term breakout testing first major resistance targets
  • British Pound constructive while above today’s low

The British Pound surged nearly 1% against the US Dollar since the start of the week with Sterling targeting initial resistance on this near-term breakout. These are the updated targets and invalidation levels that matter on the GBP/USD price charts. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Cable trade setup and more.

Sterling Price Chart – GBP/USD Daily

Sterling Price Chart - GBP/USD Daily - British Pound vs US Dollar Trade Outlook - Cable Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; GBP/USD on Tradingview

Technical Outlook: In my latest Sterling Price Outlook we noted that the GBP/USD pullback was, “trading just above multi-month uptrend support and the immediate focus is on a reaction down here.” The threshold in focus was the Oct 17th swing high at 1.2990- price briefly registered a low last week at 1.2952 before rebounding with another failed attempt early this week giving way to a larger breakout the British Pound.

The advance is now eyeing the first major resistance hurdle at the 61.8% retracement of the decline off the late-December high at 1.3157- we’re looking for reaction here. The focus is higher while above today’s low / trendline support around 1.3030/36 with a close below 1.2990 still needed to put the bears in control. A topside breach from here exposes subsequent daily resistance objectives at the yearly open at 1.3253 and 1.3281/84- look for a bigger reaction there IF reached.

Sterling Price Chart – GBP/USD 120min

Sterling Price Chart - GBP/USD 120min - British Pound vs US Dollar Trade Outlook - Cable Technical Forecast

Notes: A closer look at Sterling price action shows GBP/USD trading within the confines of a near-term ascending pitchfork formation extending off the monthly lows. Note that the upper parallel and the 100% extension of the weekly rally further highlighting near-term resistance at 1.3157 – the immediate advance may be vulnerable into this threshold.

Initial support rests at the median-line, currently around 1.3080 backed by near-term bullish invalidation at 1.3036 – both levels of interest for possible downside exhaustion / long-entries IF reached. A breach keeps the focus on topside targets at 1.3213, 1.3253 and the late-December high / 61.8% retracement of the decline off the 2019 high at 1.3281/84.

Bottom line: The Sterling breakout is testing the first major resistance zone into 1.3157 and leaves the immediate advance vulnerable while below this threshold. From a trading standpoint, a good spot to reduce long-exposure / raise protective stops – be on the lookout for possible exhaustion on pullbacks while above 1.3030 with a breach higher keeping the focus on yearly-open resistance. Review my latest British Pound Weekly Price Outlook for a closer look at the longer-term GBP/USD technical trade levels.

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

Sterling Trader Sentiment – GBP/USD Price Chart

Sterling Trader Sentiment - GBP/USD Price Chart - British Pound vs US Dollar Trade Outlook - Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD - the ratio stands at +1.24 (55.44% of traders are long) – weak bearish reading
  • Long positions are11.58% lower than yesterday and 22.46% lower from last week
  • Short positions are7.02% higher than yesterday and 17.55% 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.

---

Key UK / US Economic Releases

UK / US Economic Releases - GBP/USD Calendar

Economic Calendar - latest economic developments and upcoming event risk.

Active Trade Setups

- Written by Michael Boutros, 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