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
EUR/USD
Mixed
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
Oil - US Crude
Bullish
Wall Street
Mixed
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
GBP/USD
Mixed
USD/JPY
Mixed
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
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/ltEO5dpKux
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/LDP3HlN4A3
GBP/USD Technical Analysis: Big Picture Support Holds, for Now

GBP/USD Technical Analysis: Big Picture Support Holds, for Now

James Stanley, Senior Strategist

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

Talking Points:

  • GBP/USD Technical Strategy: Long-term mixed, intermediate-term bearish, near-term bullish.
  • Cable price action broke down to re-test a key area of support that had previously functioned as resistance.
  • If you’re looking for trading ideas, check out our Trading Guides. They’re free and updated for Q1, 2017. If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment.

In our last article, we looked at the continued strength in GBP/USD as the pair finally tested above the 1.3000 psychological area of resistance. On the under-side of price action, a rather clear support zone had popped-up around the 1.2750 psychological level; and this syncs with prior range resistance from the post-Flash crash backdrop in Cable. As the U.K. is just a week away from general elections, anxiety has begun to show as polls are indicating that Theresa May’s conservatives may end up losing seats from the venture: And this can make for an even messier ‘Brexit negotiation,’ with the decision to host early elections back-firing on the newly installed PM. As sellers took over in Cable, support showed-up at a familiar area around 1.2750; and at least for now, buyers have held the pair above prior range resistance.

GBP/USD Technical Analysis: Big Picture Support Holds, for Now

Chart prepared by James Stanley

While this bounce off of support may be attractive for continuation themes on longer-term time frames, the bigger question is one of short-term momentum. This recent bounce off of the support zone around 1.2750 has catapulted price action into the under-side of a previously bullish trend-line, which can be found by connecting the post-Breakout swing-low with the low from May 15th. This should give bulls or those utilizing short-term bullish strategies reason to pause as this resistance coincides with prior support; giving rise to the idea that we may be looking at either a) range-bound conditions or b) a corrective swing-lower.

GBP/USD Technical Analysis: Big Picture Support Holds, for Now

Chart prepared by James Stanley

For bullish approaches, or for those with a longer-term time horizon, waiting for a re-test of support could open the door to top-side swing strategies. The key here would be waiting for support to actually show around 1.2750-1.2775, as a 3rd test of a support zone usually brings diminishing marginal results unless something tangible has changed in the underlying conditions.

For those looking at shorter-term strategies, bearish reversals could be operable provided that risk is controlled. As we looked at in our last article, breaks-below the prior support level around 1.2825 could open the door to short-side setups, as bearish drive below these swing points illustrate waning bullish support that had previously driven cable to higher-highs and higher-lows. Taken with the near-term lower-low that printed earlier this morning, and those looking to execute short-term strategies could have a workable backdrop here in short Cable setups.

GBP/USD Technical Analysis: Big Picture Support Holds, for Now

Chart prepared by James Stanley

--- Written by James Stanley, Strategist 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