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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • 🇮🇹 Government Budget (2020) Actual: -9.5% Previous: -1.6% https://www.dailyfx.com/economic-calendar#2021-03-01
  • 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/2v3F0jycr9
  • 🇮🇹 Full Year GDP Growth (2020) Actual: -8.9% Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 1.88% France 40: 1.65% Germany 30: 1.32% US 500: 1.21% Wall Street: 1.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/b4rnm5vtE1
  • Heads Up:🇮🇹 Full Year GDP Growth (2020) due at 11:00 GMT (15min) Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇮🇹 Government Budget (2020) due at 11:00 GMT (15min) Previous: -1.6% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Fed's Barkin says would be disappointed if we didn't see bond yields rise as the outlook improves - WSJ
  • What are some factors affecting the USD this quarter? Get your free forecast here: https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/yxnbYVF3T6
  • 🇮🇹 Inflation Rate YoY Prel (FEB) Actual: 0.6% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Thanks as always @JeremyNaylor_IG https://t.co/WALxUC2Ug8
British Pound Price Action Setups: GBP/USD, GBP/JPY

British Pound Price Action Setups: GBP/USD, GBP/JPY

Tammy Da Costa, Markets Writer

GBP, British Pound, Sterling Outlook:

Advertisement

The British Pound has managed to maintain its upward trajectory in spite of an extension of current lockdown measures until 22nd February 2021 . Despite a relatively subdued week of volatility in the FX-space, GBP marched on against its major counterparts, as the rapid rate of vaccinations resulted in a surge in business confidence amid hopes of a reopening of the economy as the inoculation program progresses.

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

Meanwhile, all eyes are now on the upcoming BoE monetary policy decision and the release of its quarterly MPC report scheduled for Thursday 4 February 2021. Although policy measures are expected to remain unchanged, the quarterly report will provide a better perspective relating to the current health of the UK economy, as renewed lockdown measures and a rising fatality rate resulted in a decrease in economic output, therefore limiting GBP strength.

GBP Forecast
GBP Forecast
Recommended by Tammy Da Costa
Download our fresh Q1 GBP forecast
Get My Guide
Economic Calendar

DailyFX Economic Calendar

GBP/USD Price Action

GBP/USDprice action remains within the confines of a rising wedge, simultaneously clinging to the 55-period Exponential Moving Average (EMA), providing both support and resistance for the major currency pair. Currently, the key psychological level of 1.3800 holds bulls at bay, with a possible tilt towards mean reversion, provided that bears manage to break below trendline support at 1.364.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Tammy Da Costa
Building Confidence in Trading
Get My Guide

GBP/USD 4 Hour Chart

GBPUSD Four Hour Price Chart

Chart prepared by Tammy Da Costa, IG

At the time of writing, retail trader data shows 33.15% of traders are net-long with the ratio of traders short to long at 2.02 to 1. The number of traders net-long is 26.17% lower than yesterday and 26.12% lower from last week, while the number of traders net-short is 23.02% higher than yesterday and 11.35% higher from last week.

GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 22% 17% 19%
Weekly 35% -34% -12%
Learn how to use Sentiment in your trading strategy
Get My Guide
GBPUSD Sentiment

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bullish contrarian trading bias.

GBP/JPY Price Action

Bulls driving GBP/JPY continue to dominate with numerous technical indicators implying that a retest of the February 2020 high (144.829) is still possible in the near future. Price action remains above both the 50-Day Moving Average (SMA) and the rising trendline which continues to hold as support. However, a Relative Strength Index (RSI)of 71 indicates that the pair may be overbought andfurther advances may face a bit of resistance.

Forex for Beginners
Forex for Beginners
Recommended by Tammy Da Costa
Forex for Beginners
Get My Guide

GBP/JPY Daily Chart

GBPJPY Price Chart

Chart prepared by Tammy Da Costa, IG

According to client sentiment, at the time of writing, retail trader data shows 28.75% of traders are net-long with the ratio of traders short to long at 2.48 to 1. The number of traders net-long is 0.90% higher than yesterday and 1.75% lower from last week, while the number of traders net-short is 18.59% higher than yesterday and 37.04% higher from last week.

GBPJPY Sentiment

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/JPY-bullish contrarian trading bias.

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

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

DISCLOSURES