GBP/USD, EUR/GBP and GBP/AUD Outlooks and Charts
GBP/USD, EURGBP and GBP/AUD Price and Chart Analysis:
- GBP/USD probing support ahead of NFPs
- EUR/GBP stuck in a range.
- GBP/AUD continues to fall as the Australian dollar firms.
GBP/USD Respecting Support For Now
Cable has dropped three big figures from last Thursday’s high print at 1.2648 and is finding short-term support from both the 50% Fibonacci retracement and the 50-day moving average intersection between 1.2305 and 1.2310. This weeks downtrend remains in place with lower highs and lower lows in place, but a series of three higher lows from March 19 are also in place until 1.2247 is broken and closed below. The CCI indicator is hovering above the oversold boundary and is at a six-week low. GBP/USD remains in a one-month range of 1.2247 – 1.2647. Ahead Friday, a UK bank holiday will thin Sterling trading conditions, while the latest US jobs report is expected to show at least 21 million people joining the unemployment queue. The US dollar remains strong and any further strength could see GBP/USD re-test support.
GBP/USD Daily Price Chart (December 2019 – May 7, 2020)
EUR/GBP is another range-bound Sterling pair with the Euro the weaker of the two currencies. The 0.8679 – 0.8865 range has held since April 1 and both support and resistance have been tested and rejected. Support still remains under threat with the pair below the 50-dma and currently trading either side of the 20-dma at 0.8726. A close below the short-dated moving average would add to negative sentiment, while a close and open above the 61.8% Fibonacci retracement level at 0.8747 would ease downside pressure. A cluster of recent lows should protect support for now.
EUR/GBP Daily Price Chart (October 2019 – May 7, 2020)
GBP/AUD is nearing important support as the Australian dollar continues to push higher, boosted by the prevailing risk-on bid. GBP/AUD is trading either side of the 200-dma and a confirmed break below would bring the 1.8995/1.9000 support level into play. Below here a cluster of late-December/early-January higher lows between 1.8694 and 1.8767 may offer support. Bulls may target 1.9384 and the 1.9536.
GBP/AUD Daily Price Chart (August 2019 – May 7, 2020)
Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre
What is your view on Sterling (GBP) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.