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
EUR/USD
Bullish
Oil - US Crude
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
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • RT @C_Barraud: 🇺🇸 *PELOSI SAYS `MILES APART' ON SOME ISSUES IN #STIMULUS TALKS - BBG *PELOSI: `VERY FAR APART' ON MONEY FOR GETTING KIDS TO…
  • White House Economic Advisor Larry Kudlow: -Data suggests economy only needs 'targeted money' -Thinks economy is entering a 'self-sustaining recovery' -Trump 'completely opposes' bailing out states $USD $TNX $SPX
  • FTSE 100 IG Client Sentiment: Our data shows traders are now net-short FTSE 100 for the first time since Jul 20, 2020 when FTSE 100 traded near 6,264.90. A contrarian view of crowd sentiment points to FTSE 100 strength. https://www.dailyfx.com/sentiment https://t.co/iX4wB4HOah
  • Fed's Rosengren says the #Fed has been clear that negative interest rates are unlikely to be used
  • Back from vacation and back on schedule Going live for today's stock market webinar in 10 minutes - https://t.co/rmwDABTiN2 https://t.co/oC3Igu2muT
  • I've seen three more headlines today suggesting that there is significant money still on the sidelined despite the climb in markets. Is the assumption that some small tech milestone or new headline would excite investors to pay record amounts to get into a stretched market?
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.57% 🇪🇺EUR: 0.41% 🇨🇦CAD: 0.40% 🇳🇿NZD: 0.14% 🇬🇧GBP: -0.16% 🇯🇵JPY: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3mZjwCXcwc
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 2.39% France 40: 1.37% US 500: 1.29% Germany 30: 1.14% Wall Street: 0.97% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/3rljxp4YdZ
  • Heads Up:🇺🇸 Fed Kaplan Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-12
  • Poll: What do you think set off Gold's sharp tumble yesterday - its largest single-day plunge since the April 2013 crash? Answering this question for yourself can help you decide whether this is a temporary waver or the impetus for a new trend.
GBP/USD Technical Analysis: Cable Congestion, Rally to Resistance

GBP/USD Technical Analysis: Cable Congestion, Rally to Resistance

2017-02-23 17:55:00
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 GBP/USD as price action had been rather direction-less of recent. As we noted, this appeared to be playing in the longer-term bout of congestions that’s taken place near multi-year lows after the tumultuous second half of 2016. This, of course, spans the ‘Brexit referendum,’ the ensuing dovish campaign from the Bank of England, and then the ‘flash crash’ in early October. But ever since those flash crash lows have come-in, GBP/USD has sputtered anytime a legitimate test of resistance has come into-play; leading to, in essence, four months of congestion.

GBP/USD Technical Analysis: Cable Congestion, Rally to Resistance

Chart prepared by James Stanley

Within this congestion has been numerous attempts for prices to trend-higher; starting with the Bank of England’s Super Thursday in early November. When the BoE shifted inflation expectations-higher, price action in the British Pound attempted to break-out higher, but resistance came in at 1.2775, which is very near a prior level of swing-support. Since then, price action has been unable to set any new high’s or lows, leading into what has been, in essence, four months of congestion in Cable price action.

GBP/USD Technical Analysis: Cable Congestion, Rally to Resistance

Chart prepared by James Stanley

On a more near-term basis, we’ve seen price action in Cable rally up to a level of resistance that should further temper bullish excitement in the pair. The level of 1.2552 is the 50% retracement of the major move spanning from the September 22nd high down to the low on January 16th (excluding the ‘flash crash’ low).

GBP/USD Technical Analysis: Cable Congestion, Rally to Resistance

Chart prepared by James Stanley

For those that do want to push an aggressively-bullish stance, a sustained break above the February 9th high (1.2582, the same ‘activator’ level looked at in our last article) could open the door for such an approach. At the very least, this would show that bulls may be gaining some level of conviction on a longer-term basis that could, potentially, continue for a bit.

For those that want to take a more conservative stance on a market that’s been rather choppy of late, breaking above that longer-term level of resistance at 1.2775 could make such a prospect more probabilistic, as this could finally signal some element of resolution with this choppy price action that Cable has been exhibiting.

--- 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

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.