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
Oil - US Crude
Wall Street
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
More View more
Breaking news

Chinese PMI Data Beats Estimates. Manufacturing 52.0, Est 44.8, Non-Manufacturing: 52.3, Est 42.0

Real Time News
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.18% 🇦🇺AUD: -0.13% 🇨🇦CAD: -0.22% 🇪🇺EUR: -0.27% 🇬🇧GBP: -0.69% 🇯🇵JPY: -0.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XyAyUgqavm
  • LIVE NOW! APAC Head Strategist @IlyaSpivak discusses the technical and fundamental $AUDUSD outlook for the week ahead here - https://www.dailyfx.com/webinars/378612179?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.82%, while traders in US 500 are at opposite extremes with 72.90%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/el9cpkaZNX
  • The $USD may rise versus the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit if capital flows out of #ASEAN countries as key U.S. data risks a selloff in equities. Get your market update from @ddubrovskyFX here: https://t.co/JWIRn6MLrK https://t.co/W3zdKcvSCJ
  • LIVE IN 30 MIN: APAC Head Strategist @IlyaSpivak discusses the technical and fundamental $AUDUSD outlook for the week ahead here - https://www.dailyfx.com/webinars/378612179?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @DanielGMoss: Spontaneous spike prior to Chinese #PMI releases Strong results compared to previous record lows Non-manufacturing: 52.…
  • China's NBS: Production hasn't recovered to normal level before outbreak -BBG
  • NBS: Rebound in China PMI doesn't mean economy is back to normal. March PMI alone can't tell improving trend -BBG
  • #AUDUSD trading slightly higher after Chinese PMI was released, though prior to the publication the pair briefly plummeted 1.5% before recovering https://t.co/n6bS5DtEpT
  • 🇨🇳 CNY Composite PMI (MAR), Actual: 53.0 Expected: N/A Previous: 28.9 https://www.dailyfx.com/economic-calendar#2020-03-31
Sterling Price Outlook: Pound Plunge Accelerates as Virus Spreads

Sterling Price Outlook: Pound Plunge Accelerates as Virus Spreads

2020-03-21 23:00:00
Michael Boutros, Strategist

Sterling Technical Price Outlook: GBP/USD Weekly Trade Levels

  • Sterling technical trade level update – Weekly Chart
  • GBP/USD plunges to multi-decade lows as Coronavirus global pandemic spreads
  • Pound testing weekly downtrend support- broader risk remains lower sub-1.2278

The British Pound plunged nearly 5% against the US Dollar this week with Sterling trading to lows not seen since 1985. The decline marks the second consecutive weekly loss with the March range now larger than then entire 2019 yearly trading range. Risk-off flows have taken root as the Coronavirus global pandemic deepens, fueling demand for dollar amid plummeting equity markets. Cable tested confluence downtrend support this week and the focus is on a reaction off this mark heading into next week. These are the updated targets and invalidation levels that matter on the GBP/USD technical chart. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Cable trade setup and more.

Starts in:
Live now:
Apr 06
( 12:04 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

Sterling Price Chart - GBP/USD Weekly

GBP/USD Weekly Price Chart

Chart Prepared by Michael Boutros, Technical Strategist; GBP/USD on Tradingview

Notes:In our last Sterling Weekly Price Outlook we noted that the GBP/USD had rebounded, “off lateral support and IF price is indeed heading lower, near-term advances should be capped by the median line.” Cable rebounded off the 2019 yearly open at 1.2754 but respected the median-line on a weekly close basis as resistance before reversing sharply lower last week. The losses carried over with Cable poised to mark the largest weekly range since the October 2016 low.

Weekly confluence support rests at with the 100% extension at 1.4446- this level converges on the 25% parallel of the descending pitchfork formation- the immediate short-bias may be vulnerable while above this threshold with a close below needed to keep the focus on subsequent support objectives at 1.1097. Initial resistance now back at the 2016 post-Brexit swing low at 1.1950 with broader bearish invalidation now lowered to the 2019 low-week close at 1.2278.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom Line: The Sterling outlook remains weighted to the downside after broking below significant technical support- that said, the decline is now approaching downtrend technical confluence around 1.1446. From a trading standpoint, a good area to reduce short-exposure / lower protective stops. Look for possible downside exhaustion into the start of the week – ultimately a recovery may offer more favorable entries closer to downtrend resistance. We’ll reassess a rebound IF price holds here. Review my latest Sterling Price Outlook for a closer look at the near-term GBP/USD technical trade levels.

GBP Forecast
GBP Forecast
Recommended by Michael Boutros
Download our latest quarterly GBP/USD Price Forecast
Get My Guide

Sterling Trader Sentiment (GBP/USD)

GBP/USD Trader Sentiment
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD - the ratio stands at +2.65 (72.62% of traders are long) – bearish reading
  • Long positions are13.64% lower than yesterday and 13.16% higher from last week
  • Short positions are12.20% higher than yesterday and 2.56% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Traders are less net-long than yesterday but more net-long from last week. The combination of current positioning and recent changes gives us a further mixed GBP/USD trading bias from a sentiment standpoint.
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% 3% 3%
Weekly -33% 115% 0%
Learn how shifts in GBP/USD retail positioning impact trend
Get My Guide


Previous Weekly Technical Charts

Forex for Beginners
Forex for Beginners
Recommended by Michael Boutros
New to Forex Trading? Get started with this Beginners Guide
Get My Guide

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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


News & Analysis at your fingertips.