GBP/USD, EUR/GBP, GBP/JPY, GBP/AUD - Technical Forecast
- The British Pound may be readying up for prolonged losses ahead
- GBP/USD cleared rising support, EUR/GBP rose through resistance
- GBP/JPY bearish formation may unfold, GBP/AUD eyes key barrier
GBP/USD Technical Outlook
The British Pound may be at risk in the week ahead against some of its major counterparts. Against the US Dollar, GBP/USD took out rising support from late October and the December low at 1.2905. This has exposed the November low at 1.2769 which it taken out, may send the pair to the psychological barrier between 1.2506 to 1.2582. Otherwise, a turn higher may see former rising support hold as new resistance.
| Change in | Longs | Shorts | OI |
| Daily | -18% | -5% | -15% |
| Weekly | 11% | -27% | -4% |
GBP/USD Daily Chart
EUR/GBP Technical Outlook
The Euro aimed cautiously higher against the British Pound this past week, with EUR/GBP closing above a near-term falling resistance line from late December. That may place the focus on the next psychological barrier above at 0.8592. Closing above the latter exposes the December peak at 0.8727. On the other hand, a turn lower places the focus on key support at 0.8389 followed by the range between 0.8300 to 0.8338.
Forupdates on the British Pound this week, including on the election, follow me on twitter here@ddubrovskyFX.
EUR/GBP Daily Chart
GBP/JPYTechnical Outlook
The Japanese Yen may also be in a position to see prolonged gains against Sterling. GBP/JPY is fast approaching the lower boundary of a Descending Triangle which is typically a bearish formation pattern. A close under 140.83 with confirmation may reverse the key uptrend, especially after prices took out rising support from September. This places the focus on support at 138.87 followed by 135.60.
| Change in | Longs | Shorts | OI |
| Daily | -18% | -5% | -15% |
| Weekly | 11% | -27% | -4% |
GBP/JPY Daily Chart
GBP/AUDTechnical Outlook
The British Pound may see cautious weakness against the Australian Dollar after GBP/AUD confirmed a Bearish Engulfing candlestick pattern. In order to reverse the medium-term uptrend, the pair needs to be able to take out key rising support from late July – red lines on the chart below. This places the focus on the critical psychological barrier between 1.9013 to 1.9094. If that is taken out, it exposes lows from December.
GBP/AUD Daily Chart
--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
