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
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Article and webinar recording can be found here - https://www.dailyfx.com/forex/market_alert/2021/03/03/Dow-Jones--Nasdaq-100-Forecasts-for-the-Week-Ahead.html?ref-author=phanks&QPID=917701&CHID=9
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.01% US 500: -0.01% FTSE 100: -0.42% Germany 30: -0.43% France 40: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hHbUxemSVz
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/MR33o8KmJM
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/NNR3IO1gZ7
  • $NDX extends intraday losses as fears over rising yields continue to haunt high-flying equities https://t.co/RswgSX3Rk6
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.16% Gold: -1.47% Silver: -2.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GVZ4EpYejd
  • This smells like a head-and-shoulders pattern from the Nasdaq 100 ($NDX) but we don't see the same picture from the S&P 500, Dow or Russell 2000 https://t.co/GekQLeiCEg
  • Lot's of things down today, but know what isn't? Yup, longer-term #Treasury yields An average of the 10Y and 30Y having best day in about a week = portfolio rebalancing play still front and center Fed's Evans expressed little concern about yields https://t.co/tmqCSHTnIG https://t.co/MqUumhMNxI
  • - Non-labor input costs rose moderately, particularly steel and lumber prices - Rising costs attributed to strong demand and supply chain issues - Several districts anticipate modest price increases over the next several months
  • - Commercial real estate continues to struggle, particularly offices, retail, and hotels - Low mortgage rates spurred additional demand for homes - Financial institutions reported lower loan volumes, along with lower delinquency rates and higher deposit levels
GBP/USD Technical Analysis: Trend in Question Ahead of Super Thursday

GBP/USD Technical Analysis: Trend in Question Ahead of Super Thursday

James Stanley, Senior Strategist

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

In our last article, we looked at the prospect of a reversal in GBP/USD as RSI divergence had begun to show on the 4-hour chart while the Cable continued to trade near short-term resistance. Shortly after publishing that article, an even higher-high was printed in GBP/USD; at which point US Dollar strength began to take over. For the last four trading days of the past week, the US Dollar moved higher and this theme has continued so far to kick off the new week as the US Dollar has strengthened even further.

The big question here is one of sustainability. Until five trading days ago, the US Dollar was on a profound move of weakness as US rate hike expectations were dwindling lower and lower as rate hikes were being priced even further and further out into the future. But over the last week we’ve seen those rate expectations move even lower while the US Dollar has turned around and began to strengthen.

As we had written in our last article, this could lead to trend resumption setups for Sterling bulls; but with Super Thursday on the docket for later in the week, traders may be well-served by waiting for a more confirmed setup given the rampant volatility that’s been showing in USD of late.

The near-term structure in GBP/USD remains bullish, and we’ve just moved down to the 38.2% retracement of the most recent major move in the ~1.4311 region. This area of near-term support is also showing around a prior swing high, which could open the door for long positions should support hold in this area for those looking to get short USD. A bit lower at 1.4302 we have the 50% retracement of the same Fibonacci setup, and should this become violated, a case can be made for a return of the bearish trend as we’d then have a ‘lower-low’ to work with.

GBP/USD Technical Analysis: Trend in Question Ahead of Super Thursday

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

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

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES