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.

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
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • The Hang Seng Index looks set to extend gains beyond the 30,000 mark, hitting a fresh 20-month high. Will it succeed? https://www.dailyfx.com/forex/market_alert/2021/01/21/Nasdaq-Hits-Record-High-as-Biden-Takes-Office-Hang-Seng-Eyes-30000.html https://t.co/rh5X6ViWFg
  • The US Dollar may be finding a turning point against ASEAN currencies as smaller fiscal stimulus bets, soft earnings risk and Covid cases translate into some capital flight from equities. Get your #ASEAN currencies market update from @ddubrovskyFX here:https://t.co/F3uz5GHMSd https://t.co/8FdxQnP08U
  • RT @FxWestwater: Australian Dollar Forecast: Jobs Report Fails to Inspire $AUDUSD Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/01/21/AUDUSD-Uninspired-Following-Australian-Jobs-Report.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/rI1YeoJFyL
  • The Nasdaq 100 index advanced 1.97% to an all-time high of 13,457, led by Alphabet (+5.36%), Amazon (+4.57%) and Microsoft (+3.65%). https://t.co/ALr0643lmU
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6% Expected: 6.7% Previous: 6.8% https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇦🇺 Full Time Employment Chg (DEC) Actual: 35.7K Previous: 84.2K https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇦🇺 Unemployment Rate (DEC) Actual: 6.6 Expected: 6.7% Previous: 6.8% https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇦🇺 Employment Change (DEC) Actual: 50K Expected: 50K Previous: 90.0K https://www.dailyfx.com/economic-calendar#2021-01-21
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:https://t.co/HuXPXu5PFU https://t.co/96sCoOy0GJ
  • Heads Up:🇦🇺 Full Time Employment Chg (DEC) due at 00:30 GMT (15min) Previous: 84.2K https://www.dailyfx.com/economic-calendar#2021-01-21
Forex: GBP/USD Technical Analysis – Short Position Remains Active

Forex: GBP/USD Technical Analysis – Short Position Remains Active

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • GBP/USD Technical Strategy: Short at 1.6710
  • Support: 1.6681 (trend line), 1.6593 (23.6% Fib ret.)
  • Resistance: 1.6742 (Feb 14 close), 1.6800 (38.2% Fib exp.)

We sold the British Pound against the US Dollar at 1.6710 after prices put in a Bearish Engulfing candlestick pattern below resistance at 1.6742, the February 14 close. Negative RSI divergence bolsters the case for a downside scenario. A break below minor rising trend line support at 1.6681 exposes our initial objective at 1.6593, the 23.6% Fibonacci retracement. Alternatively, a turn back above 1.6742 initially aims for the 38.2% Fib expansion at 1.6800.

On balance, positioning is relatively little-changed since we entered the position: follow-through downward is yet to materialize but the short trade setup remains valid. As such, we will continue to hold short for now. A stop-loss is to be triggered on a daily close above 1.6822, the February 17 high.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

dailyclassics_gbp-usd_body_Picture_12.png, Forex: GBP/USD Technical Analysis – Short Position Remains Active

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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

DISCLOSURES