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
GBP/USD
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
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9t94CbyQEi
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/LB749nN0K4
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/7JZu61F0OW
  • Tech stocks pulled back from record territory after Amazon posted tepid Q3 guidance. Get your weekly equities forecast from @margaretyjy here: https://t.co/kpYlD2ryue https://t.co/pXDztqY8PQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/LQS1xMPSVc
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/WmRkOUGwlq
  • Recent price action in the US Dollar Index (DXY) casts a bearish outlook for the Greenback as it extends the series of lower highs and lows from earlier this week. Get your weekly USD technical forecast from @DavidJSong here: https://t.co/aQVzoACWEp https://t.co/TBFiTrur0P
  • USD/MXN drops back into its recent range as investors await further guidance from economic data. Get your weekly Mexican Peso forecast from @HathornSabin here: https://t.co/reMgPrFGdF https://t.co/dl6gomcFxF
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/KS13JNwlvL
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/bxQ8s8eGjR
Is GBP/USD Carving a 2017 Top?

Is GBP/USD Carving a 2017 Top?

Jeremy Wagner, CEWA-M, Head of Education

Though GBP/USD has recovered some of last week’s losses, the pair continues to trade from the back of its foot. We have been anticipating a turn lower at a larger time frame for the past couple weeks because of the Elliott Wave model we are following. We could be on the forefront of larger losses for GBP/USD.

The sentiment picture is more closely aligning with the technical turn as long traders have increased 10% over the past week while short traders have decreased 4% from last week. This has caused the sentiment reading to increase from -1.50 to -1.37 to now. A positive shift towards sentiment is a subtle bearish signal as we use sentiment as a contrarian type of indicate. View the live sentiment reading and learn more about how to trade with sentiment on our IG Client Sentiment page.

We cited previously in “GBP/USD Terminal Wave Matures” that some wave relationships near 1.3060 suggested a reaction lower might occur. Based on the longer term Elliott Wave triangle pattern, this could be the start of a new trend lower that possibly retests 1.19.

GBP/USD Carving a 2017 High?

Zooming out on the chart to inspect the longer term pattern, we see GBP/USD correcting higher from the October 2016 low in a three wave move labeled A-B-C. The ‘B’ wave appears to have carved a triangle that ended on April 9. We can count a ‘C’ wave higher that appears to be finished.

Three wave moves like this are typical of corrections and suggest a higher probability potential for a complete retracement. In this case, a retracement back towards 1.19. The next important test for GBP/USD will be the 200 day simple moving average, which also appears near a former resistance trend line. This level resides near 1.2596.

If prices move higher above 1.3060, additional topside levels that may create a reaction include 1.3200-1.3235 and then 1.34.

Interested in learning more about Elliott Wave Theory? Grab the beginner and advanced Elliott Wave guide.

---Written by Jeremy Wagner, CEWA-M

Discuss this market with Jeremy in Monday’s US Opening Bell webinar.

Follow on twitter @JWagnerFXTrader .

Join Jeremy’s distribution list.

USD/CAD Elliott Wave picture implies continued weakness over time.

The Elliott Wave model for crude oil prices points sideways to higher levels.

USDJPY’s Elliott Wave model shows it is vulnerable to a 110.60 retest.

EUR/USD has been ripping lately. Read more on the EURUSD Elliott Wave picture.

Read the recent Dow Jones Elliott Wave article.

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

DISCLOSURES