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
Oil - US Crude
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
GBP/USD Technical Analysis: Bullish Continuation Seeks Higher-Low

GBP/USD Technical Analysis: Bullish Continuation Seeks Higher-Low

2017-07-05 18:07:00
James Stanley, Currency Strategist

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

Talking Points:

- GBP/USD Technical Strategy: Mixed longer-term, bullish short-term.

- GBP/USD rallied over the vaulted 1.3000 psychological figure, albeit temporarily, after Mark Carney warned of potential rate hikes, signaling a shift within the BoE as inflation continues to run-higher in the U.K.

- 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.

Last week, we looked at what appeared to be the initial makings of bullish price action in GBP/USD. And if this comes at somewhat of a surprise, that is understandable, as the British Pound has been ruthlessly offered-lower since last year’s Brexit referendum. Around the referendum, the Bank of England took on an extremely dovish approach, worried that the unprecedented risks around the divorce from the EU by the U.K. would roil the British economy. This hasn’t happened yet, but what has taken place is rising inflation after the ‘sharp repricing’ in the British Pound after Brexit was followed by this extreme-dovish stance from the Bank of England.

In June, we saw the Bank of England vote 5-3 to hold rates flat, but the fact that three MPC members dissented in favor of a rate hike gave the idea that the BoE may be nearing capitulation on their post-Brexit dovish stance. This shift is a clear response to the 2.9% inflation print from May that was released just ahead of that rate decision, and then last week saw the head of the BoE, Mr. Mark Carney, make similar remarks, warning that rate hikes may be on the horizon for the U.K.

This has the makings of bullish continuation in the British Pound as the BoE appears to be in the early stages of a more-hawkish shift, and the technical picture echoes this potential for an extension of bullish price action after last week’s burst-higher drove prices above the 1.3000 psychological level. On the hourly chart below, we’ve applied a Fibonacci retracement in the effort of finding where support may show-up for bullish continuation strategies. The ~50 pip area that runs from the 50% retracement at 1.2809 to the 38.2% retracement at 1.2861 is particularly interesting for such an approach. Support in or around this region can open the door for topside entries with stops applied below the prior swing-low at 1.2792.

GBP/USD Hourly Chart with Fibonacci Retracement and Potential Support Zone Applied

GBP/USD Technical Analysis: Bullish Continuation Seeks Higher-Low

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.


News & Analysis at your fingertips.