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
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
GBP/USD
Bearish
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
USD/JPY
Mixed
More View more
Real Time News
  • Continuation patterns can present favorable entry levels to trade in the direction of the prevailing trend. Use continuation patterns in your technical analysis here: https://t.co/TUVnO3bO1P https://t.co/vBLkMKjf4x
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/n8vpmuLdTW
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/CZePv1JEFh
  • The US dollar is unloved, oversold and at lows last seen over 30-months ago. At the moment there seems to be very little reason to buy the greenback. Get your $USD market update from @nickcawley1 here:https://t.co/VY3SLs35cp https://t.co/AVpY2GkGUG
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/IUii5478Jf
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears. .Get your market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/TCBkQdrMAR
  • RT @jposhaughnessy: BOOM! Mystery solved. https://t.co/njXlgejE0j
  • Gold and silver prices have come under significant pressure recently. However, this correction lower could prove short-lived as price analysis hints at a reversal higher. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/K1qL0fsGwy https://t.co/pH0HQmNX14
  • The dispute between the Federal Reserve and the Treasury Department concerned economists and government officials last week. Traders, however, appeared unfazed as U.S. equity markets proceeded to higher ground. Get your market update from @FxWestwater here:https://t.co/DKK7WWHKlu https://t.co/qxKvC8FAVd
  • The British Pound is eyeing a push to fresh yearly highs against the US Dollar. However, various technical setups suggest GBP could lose ground to JPY, EUR and NZD in the near term. Get your $GBP market update from @DanielGMoss here:https://t.co/NSUnZnPb4Q https://t.co/RuBAAWS37w
GBP/USD Technical Analysis: Fresh Highs After 'Brexit Ruling'

GBP/USD Technical Analysis: Fresh Highs After 'Brexit Ruling'

2017-01-25 16:06:00
James Stanley, Strategist
Share:

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 bullish trend developing in Cable after Theresa May’s ‘Brexit Speech’ had driven the pair to fresh near-term highs. This, combined with the fact that bears were unable to break below 1.2000 from the previous down-side run opened the door to a possible bullish-continuation move in the British Pound. But after such an aggressive down-side move, it was difficult to decipher whether that bullish move was more of a short-squeeze or the legimate start of a new trend, so we focused-in on the support zone around 1.2250 to watch for a ‘higher-low’ to develop in the effort of trading top-side continuation.

Since then, that zone of support helped to form a near-term bottom in GBP/USD just ahead of this week’s U.K. Supreme Court ruling on Brexit, mandating that Theresa May is going to need parliamentary approval before triggering Article 50. After this news circulated through markets, GBP/USD ran up to set another fresh near-term high, signaling the more-likely prospect of bullish continuation.

At this stage Cable is trading at six-week highs after an aggressive run over the past week-and-a-half, and this can open the door to bullish trend-continuation strategies in the pair. On the chart below, we’re looking at the 4-hour setup in Cable to highlight this recent bullish structure.

GBP/USD Technical Analysis: Fresh Highs After 'Brexit Ruling'

Chart prepared by James Stanley

On the chart below, we drill-down to the hourly setup to look at relevant levels. Underneath current price action there are three support levels identified. ‘S1’ is near-term support in an approximate 50-pip zone from the Fibonacci level at 1.2543 down to the prior swing at 1.2490. ‘S2’ is set to an area of prior support that had also functioned as the ‘swing-high’ after the initial ramp after the Theresa May ‘Brexit Speech’. And just below that we have the same zone we had looked at for confirmation of bullish continuation around the psychological level around 1.2250.

On the top-side of Cable, bulls will likely want to take heed of the potential resistance from 1.2716-1.2775. This is an imposing zone of resistance as bulls were rebuked from breaking-above on three separate occasions in mid-December. This is an opportune area for bulls to tighten up risk, or to scale out of positions while moving stops to break-even.

GBP/USD Technical Analysis: Fresh Highs After 'Brexit Ruling'

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