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
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • 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/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
British Pound Techs: GBP/USD Two-Year-Highs, GBP/JPY Wedge Break

British Pound Techs: GBP/USD Two-Year-Highs, GBP/JPY Wedge Break

James Stanley, Senior Strategist

GBP/USD, British Pound, Sterling Techs:

  • GBP/USD started the year on a bright note, setting fresh two-year-highs on the first full trading day of 2021.
  • GBP/JPY has started to tip-toe out of a symmetrical wedge formation that’s been building for more than the past year. Despite the break, buyers have shown little motivation so far.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, or the symmetrical wedge/triangle shown in GBP/JPY, check out our DailyFX Education section.
Advertisement

Sterling started the year on a boisterous note, setting a fresh two year high as the calendar turned into 2021. But GBP/USD soon found resistance at a Fibonacci level and prices have begun to pull back, begging the question as to whether Cable bulls will be able to continue driving even with increasing risk around the U.K. economy after another lockdown was ordered. This helped to elicit a bit of a pullback in GBP/USD; but so far buyers have helped to hold the bid above the key psychological level of 1.3500.

To learn more about psychological levels, join us in DailyFX Education

On the weekly chart below, that recent bullish breakout is in full view, along with the Fibonacci resistance that’s come into play to help hold the highs. The 76.4% retracement of the 2018-2020 major move plots at 1.3678.

GBP/USD Weekly Price Chart

GBPUSD Weekly Price Chart

Chart prepared by James Stanley; GBPUSD on Tradingview

Taking a shorter-term look at the matter, and we have some messy prior price action; owed in part to both Brexit drivers going into the end of 2020 along with USD-themes that remain fairly unsettled, in their own right. Nonetheless, there is still some structure to work with, key of which would be the 1.3500 zone of possible higher-low support. At this point, a bit of support has held from around a prior swing-high from early-December around 1.3539; but buyers haven’t yet been able to do much, keeping the door open for a steeper fall in the pair.

Given dynamics in other major pairings such as EUR/USD or AUD/USD, GBP/USD may be one of the more attractive candidates to work with in scenarios of extended USD-strength.

For those that are looking to establish bearish exposure in the pair, the possibility of a lower-high at or around the 1.3678 Fibonacci level could make for a rather exciting reversal backdrop. But, that lower-high may also print a bit earlier than 1.3678, and a set of prior price action swings from 1.3625-1.3641 could present such an area of interest.

GBP/USD Four-Hour Price Chart

GBPUSD Four Hour Price Chart

Chart prepared by James Stanley; GBPUSD on Tradingview

GBP/JPY Struggles Below 140.00 Following Wedge Break

GBP/JPY has been even a bit more subdued from the GBP/USD setup looked at above: Case in point, as GBP/USD rushed up to that fresh two-year-high around the 2021 open, GBP/JPY remains well below the September swing-high.

What is interesting in GBP/JPY, however, is the fact that the pair is trying to maintain a bullish breakout from a symmetrical wedge that took most of last year to build. This wedge contained most 2020 price action in the pair until the first daily close outside of the formation showed on December 30th.

To learn more about symmetrical wedges/triangles, join us in DailyFX Education

GBP/JPY Daily Price Chart

GBPJPY Daily Price Chart

Chart prepared by James Stanley; GBPJPY on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES