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
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • 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/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
Sterling Price Outlook: British Pound Surges- Bulls Face First Test

Sterling Price Outlook: British Pound Surges- Bulls Face First Test

Michael Boutros, Strategist

Sterling Technical Price Outlook: GBP/USD Trade Levels

  • Sterling technical trade level update – Daily & Intraday Charts
  • GBP/USD surges off key support zone after failed attempt to break below 1.29
  • British Pound recovery targeting downtrend / Fibonacci resistance ~1.3080

The British Pound surged more than 1.1% against the US Dollar this week with Sterling poised to mark the fourth consecutive daily advance. The rally takes GBP/USD towards the first major hurdle at down-trend resistance just higher and we’re looking for a reaction. 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 recent sell-off was approaching, “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.” Cable briefly registered a low at 1.2870 early in the week before reversing sharply higher with the advance taking GBP/USD back above the 1.2990pivot zone. The focus is on confluence resistance at 1.3080 with a breach / close above the upper parallel needed to shift the focus back to the topside. Daily support steady at 1.29 with a break lower exposing 1.2823.

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 continuing to trading within the confines of a near-term descending pitchfork formation extending off the late-December / February highs. An embedded ascending channel formation keeps the near-term focus higher while above today’s lows. Note the resistance confluence around 1.3080 where the upper parallel converges on the 61.8% retracement of the monthly range – look for a reaction there IF reached with a topside breach needed to keep the long-bias viable targeting monthly open resistance at 1.3176. Ultimately, a break below weekly-open support at 1.2894 would be needed to mark resumption of the broader downtrend.

Bottom line: The Sterling recovery is approaching confluence downtrend resistance just higher and we’re looking for a reaction on a stretch towards 1.3080 for guidance. From a trading standpoint, look to reduce long-exposure / raise protective stops on a test of parallel resistance with a breach / close above needed to keep the long-bias in play. 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

Please add a description for the image.
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD - the ratio stands at +1.85 (64.86% of traders are long) – bearish reading
  • Long positions are 6.04% lower than yesterday and 1.19% lower from last week
  • Short positions are16.51% higher than yesterday and 4.83% 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 – from a sentiment standpoint, the recent changes in positioning warn that the current GBP/USD price trend may soon reverse higher despite the fact traders remain net-long.

---

Key UK / US Data Releases

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