Skip to Content
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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
GBP/USD Risks Further Losses as Bearish Outside-Day Takes Shape

GBP/USD Risks Further Losses as Bearish Outside-Day Takes Shape

David Song, Strategist

Talking Points:

- GBP/USD Carves Outside-Day; U.K. 4Q Gross Domestic Product (GDP) on Radar.

- EUR/USD Searches for Support Following as ECB Removes Floor on Interest Rates.

- USDOLLAR Clears Near-Term Hurdle- Eyes Monthly High (12,081).

For more updates, sign up for David's e-mail distribution list.


GBP/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • GBP/USD fails to retain the bullish reaction to the 1.7% rise in U.K. Retail Sales, with the pair carving an outside day; close below 1.5400 (38.2% retracement) to 1.5420 (78.6% expansion) may spur a further decline especially as the Relative Strength Index (RSI) largely preserves the bullish formation from back in May.
  • With the U.K. Gross Domestic Product (GDP) report expected to show the growth rate expanding another 2.4% in the third-quarter, a dismal development may produce near-term headwinds for the sterling as it provides the Bank of England (BoE) with greater scope to further delay the normalization cycle.
  • DailyFX Speculative Sentiment Index (SSI) shows retail crowd remains net-long GBP/USD since August 21, but the ratio appears to be working its way back towards recent extremes as it advances to +1.77, with 64% of traders long.


EUR/USD Daily Chart
  • EUR/USD remains at a risk for a further decline as the European Central Bank (ECB) shows a greater willingness to further extend/expand its quantitative easing (QE) program while opening the door for a further decline in the deposit-rate.
  • As the ECB removes the floor on interest rates, the euro-dollar may continue to give back the rebound from back in late-July especially as the RSI fails to retain the bullish formation from earlier this year.
  • A break of the September low (1.1086) may expose the next key downside figure around 1.1000 handle (78.6% retracement).

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: EUR/USD – The Real Deal?

EURCAD Bulls Brace for ECB- Rally Vulnerable Sub 1.4955

USDOLLAR(Ticker: USDollar):

IndexLastHighLowDaily Change (%)Daily Range (% of ATR)
DJ-FXCM Dollar Index12006.4912010.9511934.820.46161.49%
USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Dow Jones-FXCM U.S. Dollar looks poised for a larger rebound as it clears the Fibonacci overlap around 11,951 (38.2% expansion) to 11,965 (23.6% retracement); will watch for a break of the bearish RSI formation from June to favor a resumption of the long-term upward trend.
  • Despite the limited market reaction to the U.S. data prints, the 4.7% expansion in Existing Home Sales may keep the Federal Reserve on course to raise the benchmark interest rate later this year as the central bank looks for a stronger recovery in the second-half of 2015.
  • The near-term advance brings the key near-term resistance zones back into play around 12,049 (78.6% retracement) to 12,082 (61.8% expansion).

Join DailyFX on Demand for Real-Time SSI Updates!

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

New to FX? Watch this Video

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