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.

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
Bullish
Wall Street
Mixed
Gold
Bullish
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • #Crudeoil prices could reverse lower as the #OPEC Monthly Oil Market Report (MOMR) forecasts fading global demand and oversupply concerns. Get your #commodities update from @DanielGMoss here: https://t.co/G02ajeLPqZ https://t.co/THuauT4XQ9
  • The outlook for the $EURUSD pair has worsened after its failure to move back to the high just above 1.20 touched on September 1 despite the #ECB’s decision earlier this month not to talk down the Euro. Get your #currencies update from @MartinSEssex here: https://t.co/kDCHxHgGlU https://t.co/Li4jHqaNdC
  • #USDollar Outlook Bearish on Mnuchin & Powell Testimonies, Key US Data ⬇️ https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2020/09/20/US-Dollar-Outlook-Bearish-on-Mnuchin-Powell-Testimonies-Key-US-Data.html
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/fuWSUDE1pT
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eRTdlhAOFN
  • The Japanese #Yen may continue to exhibit a bullish behavior as the Bank of Japan (BoJ) appears to be in no rush to alter the path for monetary policy. Get your #currencies update from @DavidJSong here: https://t.co/HFjc6KGzRw
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here: https://t.co/CPxP1Q8B6d https://t.co/n2wESiqnpJ
  • The US Dollar may rise against ASEAN currencies like the Singapore Dollar if local retail sales and sentiment data disappoints. USD/IDR may fall on the Bank of Indonesia. Get your market update from @ddubrovskyFX here:https://t.co/HpH8pXFdLl https://t.co/laHmaZXpJe
  • The US Dollar may rise against the Singapore Dollar and Philippine Peso. USD/MYR’s downtrend holds, but a bullish pattern brews. USD/IDR seems stuck between key technical levels.Get youe #ASEAN currencies market update from @ddubrovskyFX here:https://t.co/TF6DRVp6kX https://t.co/WEtxkdSwxD
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/4wlRjBTCzK
GBP/USD Technical Analysis: The Sliding Scales of Support

GBP/USD Technical Analysis: The Sliding Scales of Support

2017-12-18 20:01:00
James Stanley, Strategist
Share:

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

GBP/USD Technical Analysis: The Sliding Scales of Support

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

GBP/USD Technical Analysis: The Sliding Scales of Support

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