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
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
More View more
Real Time News
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/lx3cMSpZNc
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfUNW0y https://t.co/n4NXZUovb0
  • Scoping out next week for trading the market, there are a range of high profile influences including September PMIs, Evergrande and a range of central bank decisions. Top listing on my docket is the #FOMC with my scenarios below. Full analysis: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/18/SP-500-and-Dollar-on-the-Hook-for-Breaks-with-Evergrande-Fed-and-September-Trade-Ahead.html https://t.co/ZdoMJS9fp5
  • 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/Q3Yfe6TMLw
  • 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/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • 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/KsPiWBysiR
  • 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/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • 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/bde30KM8OE
Sterling Price Outlook: British Pound Slams into Key GBP/USD Support

Sterling Price Outlook: British Pound Slams into Key GBP/USD Support

Michael Boutros, Strategist

Sterling Technical Price Outlook: GBP/USD Trade Levels

  • Sterling technical trade level update – Daily & Intraday Charts
  • GBP/USD slams into critical support zone – looking for a reaction / pivot in price
  • British Pound focus is on the weekly close with respect to 1.29 for guidance

The British Pound plummeted nearly 2% against the US Dollar this week with Sterling falling to a key support zone near the late-December lows – it’s make-or-break at these levels near-term. 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 had rebounded off lateral support with, “a close below 1.2990 still needed to put the bears in control.” A break lower in the British Pound yesterday fueled a sell-off of more than 0.5% with Cable now testing a key Fibonacci support confluence at 1.2907/20- a region defined by the 61.8% extension of the decline off the December high and the 38.2% retracement of the 2019 range. A break / close below this threshold would be needed to suggest a larger Sterling reversal is underway – that said, the immediate short-bias may be vulnerable near-term while above.

Sterling Price Chart – GBP/USD 240min

Sterling Price Chart - GBP/USD 240min - 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 descending pitchfork formation extending off the late-December / February highs. Note that the median-line converges on the 1.2907/20 support zone into and further highlights the technical significance of this region- watch the weekly close.

Initial resistance now back at 1.2990 backed by the 75% parallel (currently ~1.3030s) with near-term bearish invalidation now lowered to the 1.31-handle. A break lower from here exposes subsequent support objectives at 1.2800/22 and the 2019 yearly open at 1.2753- both regions of interest for possible downside exhaustion IF reached.

Bottom line: The Sterling breakdown is testing a critical support zone just below the January lows- the immediate focus is on a reaction off the 1.2900/20 support zone with the short-bias vulnerable while above. From a trading standpoint, a good spot to reduce short-exposure / lower protective stops – be on the lookout for possible downside exhaustion IF this level holds into the close of the week- that said, respect a close below the figure. 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
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD - the ratio stands at +2.32 (69.84% of traders are long) – bearish reading
  • Long positions are8.39% higher than yesterday and 22.25% higher from last week
  • Short positions are8.36% lower than yesterday and 17.06% 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.

---

Key UK / US Data Releases

Key UK / US Data Releases - GBP/USD Economic Calendar - Sterling / Dollar Event Risk

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