Skip to Content
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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
GBP/USD Technical Analysis: The Sliding Scales of Support

GBP/USD Technical Analysis: The Sliding Scales of Support

James Stanley,

Talking Points:

- The British Pound is showing messy near-term price action, making directional prognosis on shorter-term charts a bit of a challenge.

- Retail traders remain slightly net-short, with 1.12 traders short for every one long, as of this writing.

- Want to see how GBP and USD are holding up to the DailyFX Forecasts? Click here for full access.

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

In our last article, we looked at a level of support for bullish plays in GBP/USD. That level came-in at 1.3320, and this is the 38.2% retracement of the August-September 2017 bullish move. Two weeks later, that price continues to hold support in the pair, and this is after three separate tests in the early-portion of December.

GBP/USD Two-Hour: Support at 1.3320 Remains, But Lows are Slipping

Chart prepared by James Stanley

Each recurrent test of that support appears to be creating a technical lower-low, and this may be preluding a deeper retracement in the pair. If we combine this with the near-term lower-highs that have shown-up, traders would likely want to be very careful if looking to buy at 1.3320 on a subsequent re-test.

Instead, support plays in GBP/USD can be directed to a deeper area on the chart. The levels of 1.3117 and 1.3216 could be helpful for such a purpose. At 1.3117, we have the 38.2% retracement of the ‘Brexit move’ in the pair, and at 1.3216, we have the 50% retracement of the August-September 2017 bullish move; and this is the same with which the 38.2% has been operable over the past two weeks.

Support in this zone opens the door for stops below the Q4 swing-low of 1.3026, targeting prior resistance at the 1.3477 Fibonacci level.

GBP/USD Daily: 2017 Bullish Channel Remains

Chart prepared by James Stanley

--- Written by James Stanley, Strategist for

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.