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
Bullish
Oil - US Crude
Bullish
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
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Notice

BoE Chief Econimist (Hawk) is to Step Down From BoE After June Meeting

Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 2.28% Gold: 0.78% Oil - US Crude: 0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/YIgPqIQiO8
  • Mitch McConnell: There is no GOP support for repealing the tax bill $USD
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.36%, while traders in France 40 are at opposite extremes with 75.62%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/XaeYYJbglR
  • The US Dollar (via the DXY Index) continues to trade lower after losing the uptrend from the February and March swing lows. Get your $USD market update from @CVecchioFX here:https://t.co/bvAaeNSVO3 https://t.co/tfKhSt85iN
  • Fed: - Directors of the Federal Reserve saw inflation increasing to 2% or even above
  • Fed: - Directors saw economic recovery gaining momentum - Directors are upbeat about the future, but there is still a lot of doubt - No change in the discount rate was requested by directors of all 12 districts
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: France 40: 0.33% US 500: 0.14% FTSE 100: -0.04% Germany 30: -0.05% Wall Street: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0EWmhOp4AD
  • It is our (mine as well) default habit to look for the breakouts with pressurized trend potential, but current mkt conditions don't support those kinds of setups. That said, $GBPUSD still looks like a good range picture https://t.co/3kcg34Mw0B
  • $EURUSD has continued higher today amidst further US Dollar weakness following the CPI print and a strong 30yr bond auction. The pair is currently trading around the 1.1940 level, at a three week high. $EUR $USD https://t.co/GTIUH2dxov
  • US 10yr Treasury yields have fallen further following the strong auction in the 30yr. After hitting a weekly high around 1.70% this morning, yields have dropped to a multi-day low around 1.625%. $USD https://t.co/7rK6uh1uJn
Price & Time: The Ancient Geometry At Work in the Pound

Price & Time: The Ancient Geometry At Work in the Pound

Kristian Kerr, Sr. Currency Strategist

Price & Time covers key technical themes daily and can be delivered to your inbox each morning by joining the distribution list: Price & Time

Talking Points

  • Big timing test here for GBP/USD bulls
  • Resistance at 1.5540/80 likely critical

Unfamiliar with Fibonacci Relationships? Learn more about them HERE

GBP/USD: The Geometry of the Pound

Price & Time: The Ancient Geometry At Work in the Pound

Symmetry in the markets can express itself in many different ways. The hard part is uncovering it. Traditional Fibonacci relationships are usually my favorite vehicle as they cast a wide net, but often times other forms of ‘ancient’ geometry do a better job. I am wondering if that is the case here for GBP/USD.

Gann was well known for his use of the geometry within a square. Harmonic relationships generated from the shape can be very useful when applied to the analysis of financial instruments. One of the most important relationships generated from this geometry is the Sacred Cut of .7071. It is essentially a specific proportion of squares where the sidelength of one square is equal to the diameter of another. With respect to proportion, I would argue .7071 is just as important at .618.

Now how does all this potentially apply to GBP/USD? A harmonic series derived from the proportions of a square would be 0.177,0.25,0.354, .050, 0.7071 and 1.000. The amount of time between the high in July of last year and the low this past April was 272 calendar days. The high in the pound in June of this year occurred 69 days from the low in March. That is 25% of the amount of time between last year’s high and this year’s low. The high in August occurred 136 days from the low in April or 50% of the time between last year’s high and this year’s low. Next up in the harmonic sequence is the Sacred Cut of 70.7% which is this week. Given the exchange rate has clearly responded to prior ratios in the series it does look somewhat susceptible to a turnaround here.

I see big resistance between 1.5540/80 and if cable is indeed going to turn I would expect it to happen from below there. Traction above there and this turn window is most likely a dud or the market is just responding to an arithmetic structure (in which case 75% would be the next in the sequence to watch). There is some support symmetry around 1.5320/45 and I would probably need to see this zone give way to get excited about an important move lower here.

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX

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

DISCLOSURES