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
More View more
Real Time News
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/DSp7f3YuAx
  • Technical analysis of charts aims to identify patterns and market trends by utilizing 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/HNqHcbL6vk
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/FbepD4RaFg
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
GBP/USD Technical Analysis: Braced with Bullishness, 2016 High in Sight

GBP/USD Technical Analysis: Braced with Bullishness, 2016 High in Sight

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 vertical-like price movements being seen in the Cable as the up-trend continued to take further hold. As we had written, traders would likely want to wait for price to move down to support before looking to get long, as the fear of chasing new highs turned out to be well-founded as the pair turned lower shortly thereafter. Price action on Friday of last week, leading into Monday and then Tuesday of this week produced a morning star formation with support right off of the 38.2% retracement of the prior major move at 1.4443, and this ‘higher-low’ further confirms the up-trend in GBP/USD.

At this stage, the Cable is but 55 pips away from the 2016 high, and this could make profit targets for long positions unattractive given that the most recent swing-low on the daily chart is more than 260 pips away from current price action.

Traders looking to trigger long can look for price to move to support before triggering top-side positions. There are four support levels nearby and underneath price action that may come into play for such a strategy. In the 1.4668 vicinity, we have the February top in the pair, and this had also furnished support after GBP/USD ran to new highs in early May. At 1.4640, we have the prior swing high, and this was a very short-term inflection, so traders would likely want to confirm support before acting off of such a level so near to current price action. At 1.4600 we have the previous swing-low, and at 1.4572 we have the 61.8% retracement of the ‘big picture’ move in GBP/USD, taking the low of 1.0500 up to the 2007 high of 2.1160.

Each of these levels could be potential ‘higher-lows’ for those looking to get long on the prospect of continued Sterling-bullishness. If price action falls below the prior ‘higher-low’ at 1.4443, the bigger picture up-trend in GBP/USD comes into question; and this could be an operable level for traders to investigate stop placement for long positions.

GBP/USD Technical Analysis: Braced with Bullishness, 2016 High in Sight

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