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 not Bitcoin, but $ETH is working on its own breakout at the moment back above the 4k marker after the #Bitcoin ATH https://t.co/MC3el7SaMS
  • $BTCUSD hits $66,000. Everyday is Bitcoin day
  • $BTCUSD hits 65,000. Happy Bitcoin day everyone
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.49%, while traders in USD/JPY are at opposite extremes with 74.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TBOioxBaqY
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 1.67% Gold: 0.62% Oil - US Crude: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3L8HLnD5v8
  • #Bitcoin - Daily Chart - breakout to ATH . . Watch the close. . . https://t.co/W75XZqabYP
  • Now that the Bitcoin ATH is out of the way - BTC +2.1% @ $65,540 - can we concentrate on Ethereum #btc #bitcoin #eth #ethereum https://t.co/jka7AcE27J
  • Hit series ‘Squid Game’ expected to drive subscriber growth into year end. Get your market update from @RichardSnowFX here:https://t.co/fQBG9dlLfG https://t.co/4KjKPA6u8d
  • $EURUSD res has held at that 1664 spot but buyers stepped-in for some higher-low support, right around prior resistance. could have some continuation left here, next res zone 1700-1736 $EURUSD move will be key to #DXY dynamics https://t.co/oSPWzxUtCg https://t.co/0jBF75ztJe
  • Mid-Week Market Update session with special guest @tastytrade's @tastytradeRyan starting now -- join here: https://t.co/2VlNFcWn8R
Sterling (GBP) Technical Outlook: GBPUSD, EURGBP, GBPNZD

Sterling (GBP) Technical Outlook: GBPUSD, EURGBP, GBPNZD

Nick Cawley, Strategist

GBPUSD, EURGBP and GBPNZD Technical Analysis

  • GBPUSD remains upbeat ahead of the vote.
  • EURGBP the Brexit barometer.
  • GBPNZD may offer opportunity.

We have recently released our Q1 2019 Trading Forecasts for a wide range of Currencies and Commodities, including GBPUSD along with our latest fundamental and medium-term term technical outlook.

GBPUSD Stuck in a Rut

GBPUSD will likely trade in a tight range ahead of the Brexit vote later on this evening, although false breaks either way should not be discounted. The pair currently trade around the 23.6% Fibonacci retracement level of 1.2894 with recent price action positive and indicating a further move higher. The 20- and 50-day moving averages are crossing and pointing higher, while the 200-day moving average is just below 1.3000 and easily within reach. GBPUSD estimates for various Brexit outcomes are roughly 1.1500 (No Deal/Labour government) to 1.3500+ (vote passes/soft Brexit).

IG Client Sentiment Data show retail traders are 53.2% net0long the pair, a mildly bearish contrarian set-up. However, daily and weekly changes suggest a mixed GBPUSD trading bias.

GBPUSD Daily Price Chart (March 2018 – January 15, 2019)

Sterling (GBP) Technical Outlook: GBPUSD, EURGBP, GBPNZD

Sterling (GBP) Week Ahead: Beware of False Brexit Break-Outs.

EURGBP the Brexit Barometer

EURGBP is under downward pressure on a combination of a slightly better bid British Pound and a slightly weaker Euro. The next level of EURGBP support – the 200-day moving average – kicks-in at 0.8884 before the 50% Fibonacci retracement level at 0.8860. Below here 0.8803, then 0.8725 and 0.8655. To the upside, 38.2% Fibonacci retracement at 0.8916 before a cluster of moving averages and 23.6% Fibonacci retracement between 0.8953 and 0.8986.

EURGBP Daily Price Chart (March 2018 – January 15, 2019)

Sterling (GBP) Technical Outlook: GBPUSD, EURGBP, GBPNZD

GBPNZD Stuck Between Two Levels

GBPNZD has been trading between two Fibonacci retracement levels (minus spikes) for the last month and will likely stay there pre-vote. The pair have made an attempt to break higher before a sharp sell-of. The pair are trying to build a base and move higher and now trade at the top of the 20- and 50-day cloud which crossed over and turned positive on January 6. On the downside 23.6% retracement at 1.8683 and on the upside 38.2% retracement at 1.9026.

GBPNZD Daily Price Chart (May 2018 – January 15, 2019)

Sterling (GBP) Technical Outlook: GBPUSD, EURGBP, GBPNZD

DailyFX has a vast amount of resources to help traders make more informed decisions. These include a fully updated Economic Calendar, and a raft of constantly updated Educational and Trading Guides

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES