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
Pound Weekly Technical Outlook: GBPUSD Tags Major Trend Support

Pound Weekly Technical Outlook: GBPUSD Tags Major Trend Support

Paul Robinson,
What's on this page

GBPUSD Technical Outlook:

  • Cable could bounce off 2016-present trend-line
  • At the very least increased volatility looks to be in store

Check out the DailyFX Trading Guides page for intermediate-term forecasts, educational content aimed all experience levels, and more.

GBPUSD could bounce off 2016-present trend-line

Last week brought with it more GBPUSD selling, taking Cable down to an important long-term trend-line. The trend-line began with a bang as it dates back to the October 2016 Sterling flash-crash. This line has another pair of big inflection points with the Jan ’17 and Dec ’18 lows connecting as well.

What makes the line even more solid is that despite it being 2.5 years old, you can connect the lows down to the daily time-frame. There was a brief breach of the line in January when we had another flash-crash situation (YEN, GBP, AUD) but the other lows connect nicely to forge out a strong line of support. It doesn’t mean GBPUSD will bottom, but it does mean traders should be on extra high alert for at the very least increased volatility, if not a big bounce.

If we don’t see a strong turnabout (we got some volatility on Friday) at the trend-line, more probing and a potential break could be in store that leads to the Jan 23 low at 12373. With the right price action, though, a lift off support could quickly see the first swing-level at last week’s high of 12748 hit, followed by the May 21 spike-day high at 12813.

Check out the IG Client Sentiment page to find out how changes in positioning in major markets could signal the next price move.

GBPUSD Daily Chart (Watch price action at major t-line)


GBPUSD Weekly Chart (2016-Present trend-line)


Helpful Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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