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.

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
More View more
Real Time News
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/DSp7f3YuAx
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/HNqHcbL6vk
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/FbepD4RaFg
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
British Pound Forecast: GBP/USD Tumbles in Worst Week Since 2009

British Pound Forecast: GBP/USD Tumbles in Worst Week Since 2009

Daniel Dubrovsky, Strategist

GBP/USD, EUR/GBP, GBP/JPY, GBP/CAD - Technical Forecast

  • GBP/USD experienced the worst week since 2009, extending breakout
  • EUR/GBP revisits October high as it aims to reverse prior downtrend
  • GBP/JPY downside momentum fading as GBP/CAD eyes key support

British Pound Technical Outlook

After some hesitation, the British Pound appears to have confirmed a breakout under key rising support from August. On the chart below is my majors-based GBP index, which averages it against EUR, JPY, AUD and USD. From a purely technical standpoint, that could spell a change of pace for Sterling as it risks reversing the former uptrend from August until February. With the fundamental backdrop of the coronavirus outbreak fluid, higher-than-normal levels of volatility are to be expected and ought to be taken into account.

Majors-Based British Pound Index

Majors-Based British Pound Index

Chart Created in TradingView

GBP/USD Technical Outlook

GBP/USD just experienced its largest decline over the course of 5 trading days since January 2009, tumbling in excess of 5.6%. The pair has confirmed a breakout under a rising support range from September – pink lines on the chart below. That has exposed the October low at 1.2195 which may ease selling pressure in the week ahead. If taken out, that sets up GBP/USD for a retest of last year’s low as it aims for the cheapest levels since 1985. Getting to the latter entails closing under 1.1950. In the event of a turn higher, a daily close above 1.2582 may pave the way for a revisit to the former support range between 1.2726 to 1.2769.

GBP/USD Daily Chart

GBPUSD Daily Chart

Chart Created in TradingView

EUR/GBP Technical Outlook

EUR/GBP extended its breakout after clearing falling resistance from December back in February – as expected. That has now brought the pair to retest highs from October which makes for a range of resistance between 0.8987 to 0.9019. Guiding EUR/GBP higher is a rising trend line from the end of last month – red line below. If the climb resumes in the week ahead and highs from October are taken out, that exposes 0.9148 as the pair attempts to reverse the dominant downtrend that took place towards the latter half of 2019.

Forupdates on the British Pound this week, including on the election, follow me on twitter here@ddubrovskyFX.

EUR/GBP Daily Chart

EURGBP Daily Chart

Chart Created in TradingView

GBP/JPYTechnical Outlook

GBP/JPY continued its descent this past week after prices cleared the key support range towards the end of February (140.83 to 141.16). Against the Japanese Yen, the British Pound trades in a fairly narrow descending channel going back to last month – red lines below. Positive RSI divergence warns that downside momentum is fading and the ceiling of the channel may be pressured ahead. Taking out 135.60 may open the door to revisiting former support from October which may come into play as resistance at 138.87. Otherwise, prolonging the descent may open the door to revisiting the August low.

GBP/JPY Daily Chart

GBPJPY Daily Chart

Chart Created in TradingView

GBP/CADTechnical Outlook

GBP/CAD still has more room to go to the downside before a breakout can be confirmed. Keep a close eye on “inner support” on the chart below. If this rising support range is taken out, that could pave the way for declines to prolong. That may send the British Pound lower against the Canadian Dollar towards key support at 1.6920 to 1.6981. Down the road, “outer support” may keep GBP/CAD at bay. In the event of a turn higher, the 23.6% Fibonacci retracement could come into play as resistance at 1.7539.

GBP/CAD Daily Chart

GBPCAD Daily Chart

Chart Created in TradingView

--- 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