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
Oil - US Crude
Mixed
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
  • Robinhood given an enterprise value of $32 billion after shares priced at $38. Get your market update here:https://t.co/fybAmxrAdo https://t.co/XeUn7kAZ0Q
  • 🇰🇷 Business Confidence (JUL) Actual: 97 Previous: 98 https://www.dailyfx.com/economic-calendar#2021-07-29
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.87% 🇨🇦CAD: 0.63% 🇨🇭CHF: 0.43% 🇯🇵JPY: 0.39% 🇪🇺EUR: 0.37% 🇦🇺AUD: 0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vH1UWZP3Gt
  • Robinhood closes its first session as a publicly listed company down just over 8% $HOOD https://t.co/4GOkrVfs1B
  • Heads Up:🇰🇷 Business Confidence (JUL) due at 21:00 GMT (15min) Previous: 98 https://www.dailyfx.com/economic-calendar#2021-07-29
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.33% Gold: 1.17% Oil - US Crude: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/gkJwZQnj4N
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.22%, while traders in Wall Street are at opposite extremes with 75.65%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/NPtVj3FLsQ
  • Last week’s price action has produced a shooting star formation and yesterday’s FOMC announcement helped to extend the move, driving the USD lower as the Canadian Dollar bounces from its earlier-month lows.Get your market update from @JStanleyFX here:https://t.co/tiqAYlUxA0 https://t.co/xb08I8gwpU
  • Following Amazon's miss on Q2 revenues, Nasdaq 100 futures give back Thursday's gains $AMZN $NDX $NQ https://t.co/63MAFhIjh4
  • I recently had the pleasure of speaking with @chigrl about women in finance, the FinTwit community and trends in the crude oil space Check out the full interview and article - https://www.dailyfx.com/forex/fundamental/article/special_report/2021/07/29/Commodities-Trader-Chigrl-Talks-FinTwit-Women-and-Trading.html
Sterling Technical Forecast: GBP/USD Recovery at Risk - Pound Levels

Sterling Technical Forecast: GBP/USD Recovery at Risk - Pound Levels

Michael Boutros, Strategist

Sterling Technical Price Outlook: GBP/USD Weekly Trade Levels

  • Sterling technical trade level update – Weekly Chart
  • GBP/USD recovery vulnerable while below yearly high-week close
  • Resistance at 1.4024, bearish invalidation 1.4155 - Support 1.3794, 1.3675 key
Advertisement

The British Pound snapped a three-week losing streak against the US Dollar with GBP/USD up 0.87% in early US trade on Friday. Despite the recovery, Sterling remains vulnerable after turning from technical resistance and the battle lines are drawn heading into the close of the June trade. 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 Sterling technical setup and more.

Sterling Price Chart - GBP/USD Weekly

Sterling Technical Forecast: GBP/USD Recovery at Risk - Pound Levels

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

Notes:In last month’s Sterling Weekly Price Outlook we warned that the GBP/USD, “rally may be vulnerable here into resistance at the objective yearly highs – from a trading standpoint, a good zone to reduce long-exposure / raise protective stops.” The resistance zone in focus was 1.4236-1.4303- a region defined by the 2018 high close, the objective yearly / February highs and the 50% retracement of the 2014 decline. Cable registered a high at 1.4252 into the June open before marking an outside-day reversal with the subsequent decline plummeting more than 3.2% off the highs.

A proposed descending pitchfork formation extending off the yearly highs highlights near-term support at the 78.6% Fibonacci retracement of the April rally at 1.3794 with key support at 1.3670/75 – a break / weekly close below this level would be needed to suggest a larger trend reversal is underway towards the 2017 high-week close at 1.3494. Initial resistance back at the 2018 high-week close / 61.8% Fibonacci retracement of the February decline at 1.4000/24with a breach above the yearly high-week reversal close at 1.4155 needed to fuel another challenge at the yearly highs.

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 recovery remains vulnerable while within this formation. From at trading standpoint, look for possible topside exhaustion below 1.4155 with a break / close sub-1.3675 needed to fuel the next leg lower in price. Ultimately, a close above the 1.43-handle is needed to put the bulls back in control. I’ll publish an updated Sterling Price Outlook once we get further clarity on the near-term GBP/USD technical trade levels.

Sterling Trader Sentiment - GBP/USD Price Chart

Sterling Technical Forecast: GBP/USD Recovery at Risk - Pound Levels
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD - the ratio stands at +1.13 (52.95% of traders are long) – weak bearish reading
  • Long positions are6.73% higher than yesterday and 7.83% lower from last week
  • Short positions are9.84% higher than yesterday and 23.12% 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current GBP/USD price trend may soon reverse higher despite the fact traders remain net-long.

---

Key UK / US Economic Data Releases

Sterling Technical Forecast: GBP/USD Recovery at Risk - Pound Levels

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