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.

Free Trading Guides
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
Oil - US Crude
More View more
Real Time News
  • 🇯🇵 JPY Industrial Production (YoY) (OCT F), Actual: -7.7% Expected: N/A Previous: -7.4% https://www.dailyfx.com/economic-calendar#2019-12-13
  • Heads Up:🇯🇵 JPY Industrial Production (YoY) (OCT F) due at 04:30 GMT (15min), Actual: N/A Expected: N/A Previous: -7.4% https://www.dailyfx.com/economic-calendar#2019-12-13
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/vKhjtd86RV
  • SNP is feeling pretty good tonight. #indyref2 is coming. Just a matter of when. #indyref2020? #Brexit #UKElection #UKelection2019 https://t.co/WYmQK84Mfd
  • RT @IGSquawk: Jo Swinson loses her seat to the SNP by 149 votes. #UKElection
  • RT @bbclaurak: Separately SNP sources believe they have beaten Jo Swinson - tonight may have claimed Lib Dem Leader, DUP Westmin leader, an…
  • Get your $GBP reaction to the latest #GE2019 results. Join our live coverage with @JMcQueenFX to follow the release and its impact live today at 11:30PM EST/ 4:30GMT: https://t.co/8rzLPMJ6tE #UKElection https://t.co/h7cLIuOJ2O
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.53% Gold: -0.12% Silver: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/cRuZTQ2amT
  • My trading video amid all this volatility: 'S&P 500 and Risk Trends Next Steps After #TradeWar, #Brexit Developments' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/13/SP-500-and-Risk-Trends-Next-Steps-After-Trade-Wars-Brexit-Developments.html?CHID=9&QPID=917719
  • Jeremy Corbyn steps down as Labour leader $GBP
GBP/USD Technical Analysis: Breakdown, Key Support in Sight

GBP/USD Technical Analysis: Breakdown, Key Support in Sight

2017-03-01 15:00:00
James Stanley, Currency Strategist

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

Talking Points:

In our last article, we looked at the continued congestion in Cable after GBP/USD had just broken-up to a fresh two-week high. But as we warned, sellers had come in at a key level around 1.2550, and buyers would likely want to wait, at the very least, until a break of the resistance level at 1.2582 took place before pressing bullish continuation strategies.

Since then, price action in the British Pound has broken down. Shortly after last week’s article, Cable settled back-down to prior area of support around 1.2400, and over the past 24 hours, a strong-run in the U.S. Dollar has elicited a breach of that prior batch of support. But just as we wanted to tap on the breaks for bullish continuation last week, traders may want to proceed with caution if investigating down-side continuation strategies, at least for now, as a key support level around 1.2250 sits just underneath current price action.

GBP/USD Technical Analysis: Breakdown, Key Support in Sight

Chart prepared by James Stanley

The reason to temper that excitement is that the long-term chart on GBP/USD remains considerably oversold, with price action continue to run near 30-year lows. So while the prospect of continued down-side might seem attractive on shorter-term charts, continued moves-lower could elicit new buyers as Cable tests historic. For those looking to voice USD-strength strategies, there are likely more attractive areas to watch, at least with a longer-term vantage point.

GBP/USD Technical Analysis: Breakdown, Key Support in Sight

Chart prepared by James Stanley

For those that do want to move forward with shorter-term vantage points, a break of the key support zone at 1.2250 could open the door for near-term breakout strategies. For such an approach, traders would likely want to look to prior levels of interest to factor-out profit targets for such positions. Below, we take a look at a few zones of interest.

GBP/USD Technical Analysis: Breakdown, Key Support in Sight

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.


News & Analysis at your fingertips.