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
Bearish
Oil - US Crude
Bearish
Wall Street
Bullish
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
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/roqwTv3eyP
  • Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/ghcFd5ufaD
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Simplify your trading strategy with these four indicators here: https://t.co/fYgcMxImlP https://t.co/kkekBVYvhV
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/VwIkOMpvYl
  • “The UK and EU have agreed to return to the negotiating table to try to agree a post-#Brexit trade deal. But on Friday, a joint statement said ‘significant divergences’ remained.” - BBC News #GBP
  • Multiple time frame analysis follows a top down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. Learn how to incorporate multiple time frame analysis here: https://t.co/Sy3g6HGLrR https://t.co/aRfVCRZut3
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/uUh18lR3yK
  • The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move. Incorporate the rising wedge in your trading strategy and learn more here: https://t.co/zTTk2WOrj9 https://t.co/q5oBalZieU
  • Both the S&P 500 and $EURUSD will enter the coming week with momentum to their back. What can trip up the rallies? What could keep them going? My overview for the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2020/12/05/SP-500-and-EURUSD-Rallies-Face-Different-Conviction-Questions-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/YfEXEhkbhl
  • After the recent strength of EUR/USD, a period of consolidation is likely ahead of two critical meetings: of the European Central Bank and the European Council. Get your $EURUSD market update from @MartinSEssex here:https://t.co/Slu7tHo2a4 https://t.co/9am4szeia1
GBP/USD Technical Analysis:  New Up-Trend in the Cable

GBP/USD Technical Analysis: New Up-Trend in the Cable

2015-09-18 19:45:00
James Stanley, Strategist
Share:

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Talking Points:

In our previous piece on Wednesday, we highlighted a new up-trend in the Cable as strong wage growth numbers stoked hopes for inflation in the British economy. And after comments from BOE member Kristin Forbes and Governor Mark Carney indicated that rate hikes may be around-the-corner for the economy, the Sterling has continued to price higher. After the Fed backed off of September rate hikes, this made GBP even more attractive, as this may be one of the few currencies looking at a rate hike in the coming months.

The pair has continued to put in higher-highs, and higher-lows: The price action hallmark of a strong up-trend. But capping the bullishness over the past two days is a projected trend-line, connecting the May low to the July low (shown in purple on the below chart). This is an example of old support becoming new resistance, and this could be a near-term threat to this budding up-trend.

The next level of interest on the pair is at 1.5500, which is a confluent level of psychological support/resistance as well as being a mere nine pips off of the 50% Fibonacci retracement of the most recent major move (taking the May low to the June high). Should price find support in the vicinity of this price, long positions could be attractive with stops below 1.5410 (the 61.8% Fibonacci retracement of the most recent major move), or 1.5345 as wider-risk level (which is the 50% retracement of the ‘secondary’ move from the financial collapse low of 1.3500 to the July 2014 high). Long positions could cast targets at 1.5600 (the 38.2% retracement of the most recent major move and very near to that projected trend-line), and then 1.5730 (23.6% of the most recent major move) and then 1.5750 (‘major psychological level’).

Alternatively, breaks below 1.5500 could open the door for bearish operations, with targets cast towards that 1.5410 level, 1.5345, and then 1.5300.

GBP/USD Technical Analysis:  New Up-Trend in the Cable

Written by James Stanley of DailyFX; you can join his distribution list with this link, and you can converse with him over Twitter @JStanleyFX.

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

DISCLOSURES