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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
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
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • RT @LizAnnSonders: Manufacturing’s contribution to global growth nonexistent in recent quarters @IIF @SoberLook https://t.co/JRKw7HnvUs
  • RT @LizAnnSonders: Americans haven’t been this confident in U.S. economy in nearly 20 years @Gallup https://t.co/5QLJJJHUpg
  • OPEC damage control $CL_F $USO https://t.co/oYQF2BPFxX
  • RT @WSJecon: Stocks tumbled as a dangerous viral outbreak in China led to escalating concerns about its containment and potential economic…
  • #DidYouKnow the global trade volumes dropped by close to 10% amid the Great Recession. Want to know your #tradewars history? Get it here: https://t.co/f4loFVimeY https://t.co/PFwRwL5DWt
  • $EURJPY wedge break, on to 120 support test https://t.co/GK1aZ73c55
  • Join @MBForex 's at 8:30 AM ET/1:30 PM GMT for his weekly strategy #webinar Register here: https://t.co/VAnAfZU02T https://t.co/aKMIFS4Mg7
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.55%, while traders in US 500 are at opposite extremes with 72.55%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BvggVFbgIH
  • OPEC ministers are reportedly discussing oil production cuts and an extension to the end of the year. Adds that the China virus is part of the OPEC discussion on deeper cuts - Source reports
  • Tune in to @CVecchioFX 's #webinar at 7:30 AM ET/12:30 PM GMT to prepare for major event risk in the week ahead. Register here: https://t.co/d5MAOTwJAg https://t.co/L9yxAl0DQh
Pound Sterling Week Ahead: GBPUSD, GBPAUD Chart Reversals Brewing?

Pound Sterling Week Ahead: GBPUSD, GBPAUD Chart Reversals Brewing?

2019-06-08 22:00:00
Daniel Dubrovsky, Analyst
Share:

British Pound Technical Forecast

  • Is GBPUSD on the verge of reversing the dominant downtrend?
  • Pound Sterling is struggling against the Euro, eyeing resistance
  • GBPAUD attempted a turn higher, will it find follow-through?

Build confidence in your own British Pound strategy with the help of our free guide!

GBPUSD Technical Outlook

Weakness in the US Dollar, recently compounded by a softer-than-expected jobs report, has helped the British Pound advanced against the Greenback. Meanwhile, political conditions in the United Kingdom are clouding the fundamental outlook for Sterling. The Conservative leadership race beings this week to succeed Theresa May with Brexit on the sidelines.

Technically, where does this leave GBPUSD? On the daily chart below, the pair appears to be in the process of fulfilling a reversal in the aftermath of a Falling Wedge formation, typically seen as a bullish pattern. The breakout through descending resistance occurred after positive RSI divergence formed, which showed fading momentum to the downside.

Keep an eye on the psychological power between 1.2773 and 1.2798 next. If broken, this may set the stage for an extended turnaround in Pound Sterling. Near-term resistance after that appears to be at 1.2866. Otherwise, a resumption of the dominant downtrend since May opens the door to retesting support again at 1.2604 – 1.2582.

GBP/USD Daily Chart

GBPUSD

EURGBP Technical Outlook

Against the Euro, the British Pound is struggling. After the Bullish Harami formed in early May, EURGBP proceeded to rally over 4.5%. But, the uptrend has slowed, guided higher by a rising support channel (parallel red lines below). On the 4-hour chart, near-term resistance was taken out at 0.8888, opening the door to testing the next psychological barrier between 0.8923 and 0.8953.

If that area is cleared, we could be looking at EURGBP testing the highs achieved back in January. But, negative RSI divergence persists and indicates fading upside momentum. Still, IG Client Sentiment offers a bullish-contrarian EURGBP trading bias. If there is a turn lower, keep an eye on the outer boundary of near-term support at 0.8811. If broken, losses may ensue.

EURGBP Daily Chart

EURGBP

GBPAUDTechnical Outlook

Meanwhile, the British Pound appears to be attempting to reverse the dominant downtrend against the Australian Dollar. This is because GBPAUD formed a Morning Star bullish reversal pattern this past week above key support (1.8100 – 1.8152). However, an attempt to clear the descending channel of resistance (pink parallel lines below) struggled.

Without confirmation of further closes to the upside, it is too early to say whether GBPAUD is ready to overturn declines seen since the Double Top preceded the 3.8%+ turn lower in early May. Clearing resistance would open the door to testing 1.8434. Otherwise, resuming the near-term downtrend opens the door to testing 1.7992.

For more updates on the British Pound, including on the fundamentals, you can follow me on twitter here @ddubrovskyFX. You may also join me each week on Wednesday’s at 00:00 GMT where I will be taking a look at what market positioning has to say about the prevailing trends in currencies, equities and commodities.

GBPAUD Daily Chart

GBPAUD

* Charts created in TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.