BRITISH POUND FORECAST, GBP/USD, GBP/JPY, GBP/NZD ANALYSIS – TALKING POINTS
- British Pound may wilt against NZD, USD, JPY ahead of BoE rate decision
- GBP/NZD may break below critical support, opening door to further losses
- GBP/JPY on cusp of shattering November uptrend, GBP/USD spike ahead?
GBP/JPY OUTLOOK
GBP/JPY is on the cusp of breaking below the November 2019 uptrend (white-dotted line) as the pair continues to flirt with a downside breakout. Clearing it with follow-through opens the door to testing a four-month low support level at 138.830 (gold-dotted line). Breaching that lower tier could invite further follow-through and the possibility of undoing all of the upside progress made in mid-October.
GBP/JPY – Daily Chart
GBP/JPY chart created using TradingView
GBP/NZD TECHNICAL ANALYSIS
GBP/NZD’s retreat from support-turned-resistance at 1.9974 (whited-dotted line) after three shy tests could see the pair pullback to the floor at 1.9757 (gold-dotted line). GBP/NZD may also seek to re-test the December uptrend (red parallel lines) along the way. Clearing both could instill a strong bearish bias and catalyze an aggressive selloff.
GBP/NZD – Daily Chart
GBP/NZD chart created using TradingView
GBP/NZD TECHNICAL ANALYSIS
GBP/USD appears to be forming a continuation pattern known as a Symmetrical Triangle, with the prior uptrend suggesting an upside breakout may be in the cards. However, fundamentally speaking, the upcoming Bank of England rate decision may catalyze a downside breakout and render the pattern invalid. British Pound traders will also be closely scrutinizing the event for another important reason.
GBP/USD – Daily Chart
GBP/USD chart created using TradingView
BRITISH POUND TRADING RESOURCES
- Tune into Dimitri Zabelin’s webinar outlining geopolitical risks affecting markets in the week ahead !
- New to trading? See our free trading guides here !
- Get more trading resources by DailyFX !
--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com
To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter
