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
Wall Street
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
More View more
Real Time News
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • 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/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • 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/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
British Pound Forecast: Sterling Slammed - GBP/USD Seeks Support

British Pound Forecast: Sterling Slammed - GBP/USD Seeks Support

Michael Boutros, Strategist

Sterling Technical Price Outlook: GBP/USD Weekly Trade Levels

  • Sterling technical trade level update – Weekly Chart
  • GBP/USD rebound vulnerable while yearly high / multi-year downtrend resistance
  • Initial weekly Support 1.3036 topside breach exposes 1.3675
Advertisement

The British Pound plummeted more than 1.6% againstthe US Dollar this week with GBP/USD posting a massive weekly reversal off fresh yearly highs at multi-year downtrend resistance – this is big. The recent price collapse threatens a larger correction within the confines of the broader Sterling advance in the days ahead. These are the updated targets and invalidation levels that matter on the GBP/USD weekly technical chart. Review my latest Strategy Webinar for an in-depth breakdown of this Cable trade setup and more.

Sterling Price Chart - GBP/USD Weekly

Sterling Price Chart - GBP/USD Weekly - British Pound vs Dollar Trade Outlook - Cable Technical Forecast

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

Notes: In my last Sterling Weekly Price Outlook we noted that the GBP/USD rally was, “approaching broader downtrend resistance near the 2019 / 2020 yearly highs and we’re looking for a reaction early in the month for guidance.” Cable ripped higher into the December open with price registering a high just pips above the 2019/2020 extremes (high registered at 1.3539) before reversing sharply. The broader advance remains vulnerable here while below critical resistance at the upper parallel (blue) / 2017 high-week close at 1.3494 – a breach / close above is needed to validate a larger breakout with such a scenario exposing the 2016 Brexit gap at 1.3675.

We’ve been tracking this pivot zone at the confluence of the 2020 yearly open and the 61.8% Fibonacci retracement of the 2018 decline at 1.3245/50- a close below this region would highlight the threat for a larger correction before resumption of the broader uptrend. Weekly support rests at the May trendline / 1.3036 with broader bullish invalidation at the highlighted confluence zone defined by the 38.2% retracement, 2018 low-week close and the 2019 open at 1.2727/54.

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 rally failed at multi-year downtrend resistance / fresh multi-year highs and leaves the Cable advance vulnerable while below the yearly high- watch the close of the week with respect to 1.3250. From a trading standpoint, be on the lookout for a reaction on a move lower towards uptrend support for guidance – ultimately, losses should be limited to the 1.30-handle IF Cable is indeed heading higher on this stretch. Stay nimble into the close of the week with more Brexit headlines likely to fuel volatility into the Sunday open. Review my latest Sterling Price Outlook for a closer look at the near-term GBP/USD technical trade levels.

Sterling Trader Sentiment - GBP/USD Price Chart

Sterling Trader Sentiment - GBP/USD Price Chart - British Pound vs Dollar Trade Outlook - Cable Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-short GBP/USD - the ratio stands at -1.40 (41.63% of traders are long) – weak bullish reading
  • Long positions are9.04% lower than yesterday and 14.31% higher from last week
  • Short positions are1.20% lower than yesterday and 8.39% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise. Yet traders are more net-short than yesterday but less net-short from last week and the combination of current positioning and recent changes gives us a further mixed GBP/USD trading bias from a sentiment standpoint.

---

UK / US Economic Data Releases

UK / US Economic Data Releases - GBP/USD Event Risk - Weekly

Economic Calendar - latest economic developments and upcoming event risk.

Previous Weekly Technical Charts

--- 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.

DISCLOSURES