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
GBP/USD
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 results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • 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/FFMy5O9YoY
  • 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
Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080

Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080

Michael Boutros, Strategist
Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080

Fundamental Forecast for Gold: Bullish

Gold prices are sharply higher this week with the precious metal rallying nearly 3.9% to trade at 1102 ahead of the New York close on Friday. The gains come amid a tumultuous week for markets with the Dow Jones Index falling more than 5% during the first week of January, marking the weakest yearly start since at least 1896.

The December Non-Farm Payroll release on Friday topped estimates with a print of 292K as the unemployment rate held steady at 5%. The data fueled strength in the dollar and prompted a pullback in gold which had stretched into a fresh 2-month high. With the Fed on course to implement higher borrowing-costs in 2016, strength in U.S. data may fuel bets for a 1Q rate hike and dampen the long-term appeal of bullion. That said, a further deterioration in market sentiment may continue to support gold prices in the week ahead as growing concerns surrounding China drags on risk appetite.

On December 18th, after the Fed had made a historic move to hike the benchmark interest rate for the first time in nearly a decade, we noted that, “markets have already been pricing in this hike and moving forward the focus will be on both the timing & scope of future rate hikes. For gold, this alleviates some of the immediate bearishness heading into the start of the 2016 calendar year.” Indeed gold rallied four out of five sessions this week with Friday marking the first daily loss for the yellow metal.

From a technical standpoint, prices are trading within the confines of an ascending median-line formation off the late December lows with a breach above initial December opening range (which held into the close of the year) shifting the medium-term outlook to the topside. The rally extended as high as 1113 on Friday before turning over post-NFPs and although prices are vulnerable for a deeper pullback near-term, the trade remains constructive while above confluence support at the lower median-line parallel / 1079.

Resistance stands at the confluence of the 1.618% extension extending off the 2015 lows and the 50% retracement of the October decline at 1116/18, with key resistance eyed higher at 1135/39. This region is defined by 61.8% retracement, the upper median-line parallel & the 200-day moving average and may offer more solid structural resistance. Note that the daily momentum signature failed at 60 this week, suggesting that we could see a move lower before making another attempt at the highs. Bottom line: Looking to buy dips above 1079 targeting a fresh monthly high.

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

DISCLOSURES