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British Pound Technical Forecasts: GBP/USD, GBP/JPY, GBP/NOK

British Pound Technical Forecasts: GBP/USD, GBP/JPY, GBP/NOK

2020-02-04 05:00:00
Dimitri Zabelin, Analyst
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BRITISH POUND PRICE FORECAST, GBP/USD, GBP/JPY, GBP/NOK – TALKING POINTS

  • GBP may continue to slip against US Dollar
  • GBP/JPY broke critical uptrend: what next?
  • GBP/NOK in store for a bearish correction?

GBP/USD TECHNICAL ANALYSIS

As outlined in my prior piece, GBP/USD formed what appeared to a be continuation pattern known as a Symmetrical Triangle. On January 31, the pair experienced an upside breakout which could have led to a bullish spike given the prior uptrend preceding the pair’s compression. However, the lack of follow-through demonstrated traders were not yet confident enough to climb higher.

GBP/USD – Daily Chart

Chart showing GBP/USD

GBP/USD chart created using TradingView

The pair subsequently closed approximately 1.50 percent lower and within spitting distance of the Symmetrical Triangle’s lower bound. Looking ahead, the pair may look to retest the December low at 1.2905 if selling pressure overwhelms buyers. Conversely, GBP/USD bulls may stage another attempt at an upside breakout, though bold price action may become more timid as the pair approaches resistance at 1.3212.

GBP/JPY OUTLOOK

GBP/JPY has broken below the November 2019 uptrend, though confirmation may be needed before traders start tilting towards favoring an overwhelmingly bearish bias. A daily close below the uptrend could see the pair retest the October swing-low at 138.872. On the other hand, if the pair is able to stave off a bearish correction, the next ceiling GBP/JPY would have to clear may be around 144.530.

GBP/JPY – Daily Chart

Chart showing GBP/JPY

GBP/JPY chart created using TradingView

GBP/NOK PRICE CHART

GBP/NOK recently flirted with getting back on the rails of the upward-sloping track dating back to August 2019, though recent price action suggests a bearish correction may be in the cards. The pair also recently broke below the January uptrend after bouncing back from support at 11.5188. Looking ahead, GBP/NOK may retreat to the floor at 11.8503, which if broken, opens the door to further losses and retest of the January low at 11.5188.

GBP/NOK – Daily Chart

Chart showing GBP/NOK

GBP/NOK chart created using TradingView

BRITISH POUND TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

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