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.

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
Pound Technical Outlook – GBP/USD In Slow Grind Mode, Big Resistance Ahead

Pound Technical Outlook – GBP/USD In Slow Grind Mode, Big Resistance Ahead

Paul Robinson, Strategist

GBP/USD Technical Outlook: Neutral

  • GBP/USD continues to rise within the confines of a channel
  • Stiff test ahead with long-term resistance not far away
Advertisement

GBP/USD continues to stay within the confines of an upward channel since bottoming in late September. For it to pick up momentum it will need to break out of the structure, but the caveat to a breakout of the smaller structure is there will be an even bigger obstacle to overcome.

Just ahead lies a big crossroad of resistance with a trend-line from 2007 and the 2009 low intersecting at roughly the same juncture. The turn down in September started at that crossroad; it will be interesting again to see how price might react upon a test.

The 13500 area is formidable, and if GBP/USD is to trade higher it will need to be crossed. A rejection lower won’t immediately be bearish, but suggest another sizable round of selling could be in store, so at that juncture we would want to see how price can hold up at the lower channel line.

The overall feeling for the days ahead is that risk/reward from either side isn’t particularly appealing without further clarity.

GBP Forecast
GBP Forecast
Recommended by Paul Robinson
Check out the Q4 GBP Forecast
Get My Guide

GBP/USD Daily Chart (rising within confines of a channel)

GBP/USD daily chart

GBP/USD Monthly Chart (big long-term resistance)

GBP/USD monthly chart

GBP/USD Charts by TradingView

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.

DISCLOSURES