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
Oil - US Crude
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
More View more
Real Time News
  • There is a creep on uncertainty with the rise of the Delita variant and the slowing of the economic recovery. Our DFX analysts give you an updated analysis of the top opportunities for Q3 👉https://t.co/wEineMCbzt https://t.co/WN7FCc05kD
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.18% France 40: 0.12% Wall Street: 0.06% FTSE 100: 0.06% Germany 30: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/bk2Kev7Pcr
  • The price of gold consolidates ahead of the Federal Reserve interest rate decision on July 28 as the central bank is expected to retain the current policy. Get your $XAUUSD market update from @DavidJSong here:https://t.co/w5te9nqWSS https://t.co/byi01PAjlS
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.59% 🇳🇿NZD: 0.43% 🇨🇭CHF: 0.39% 🇯🇵JPY: 0.33% 🇦🇺AUD: 0.29% 🇨🇦CAD: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/B4ZNWS1nsB
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: -0.09% US 500: -0.14% FTSE 100: -0.29% Wall Street: -0.30% Germany 30: -0.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/K8pJJZxuTM
  • The GOP has rejected the Democrats global offer on an infrastructure agreement - CNN
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.13% Silver: 0.11% Gold: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/blZDvtm5lh
  • 🇺🇸 New Home Sales MoM (JUN) Actual: -6.6% Expected: 3.5% Previous: -7.8% https://www.dailyfx.com/economic-calendar#2021-07-26
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.88%, while traders in Wall Street are at opposite extremes with 72.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/leiNtJOg06
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 0.35% Gold: 0.06% Oil - US Crude: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5GFYVwsGKM
GBP/USD Technical Analysis: Bullish but Nearing Resistance Barrier

GBP/USD Technical Analysis: Bullish but Nearing Resistance Barrier

James Stanley, Senior Strategist

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

Talking Points:

  • GBP/USD Technical Strategy: Near-term price action continues moving higher in a bullish manner.
  • While price action remains below the longer-term support value of 1.3500, the pair could pose continued bullish price action as additional rate-cut bets for the U.K. unwind as inflationary pressure has begun to show.
  • SSI - If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.

In our last article, we looked at the potential for the British Pound to pose an extended top-side run after the Bank of England’s post-Brexit maneuvering drove the Sterling lower; exposing the economy to inflationary pressure as import prices continue to tick higher. And while this may not necessarily amount to a rate hike for a bank that just unloaded an artillery of stimulus last month, it could soften additional rate-cut bets as higher levels of inflation force the BoE’s hand away from future dovish moves.

Since that article, GBP/USD broke out of the top-side of the symmetrical wedge formation that had built-in post-Brexit, and prices have continued to trounce higher with higher-highs and higher-lows printing throughout; furthering the bullish case for the Cable.

There is but one complication with bullish strategies on the pair at the moment, and that’s the outsized thicket of resistance sitting above current price action. At 1.3480 we have the July swing-high in the pair; at 1.3500 we have the ‘Financial Collapse low’ that set swing support on the pair for more than 7-years before giving way to Brexit-driven price action earlier this summer. And just a bit above that at 1.3532 we have the post-Brexit swing-high; and this was the peak level in the pair just ahead of Mark Carney’s impromptu press conference just days after the Brexit referendum, in which he assured markets that accommodation would be coming from the Bank of England, preemptively.

Traders would likely want to move forward with bullish approaches in one of two ways: A) wait for a deeper support inflection in order to get long or B) let the batch of top-side resistance give way to confirm the pair’s bullish potential before triggering long, at which point traders can look to buy ‘higher-low’ support. For the inside approach, traders would likely want to target the zone around 1.3250, as this has a key Fibonacci retracement level as well as being a psychological level and a prior form of resistance (outlined in purple on the below chart). For traders looking to wait for more information, let the pair break above the 1.3532 level before looking to catch that ‘higher-low,’ which given current technical structure can be attractive if showing up in the zone from 1.3480-1.3500.

GBP/USD Technical Analysis: Bullish but Nearing Resistance Barrier

Chart 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