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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • 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/Ye4m1FMKUW https://t.co/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
  • 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/AkE7bFRWAt
  • $GBPUSD continues to trade in ranges as volatility dwindles. UK data to play second fiddle to FOMC. Get your market update from @JMcQueenFX here: https://t.co/T0Eg4KaENB https://t.co/GMmZa5L0Il
  • 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/wlGgQrcK3X
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/qnQ8Cx0DKv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
GBP/USD: February Flop Leads to March Strength, 1.4000 Re-Test Likely

GBP/USD: February Flop Leads to March Strength, 1.4000 Re-Test Likely

James Stanley, Senior Strategist

Talking Points:

- GBP/USD continues to gain after setting a fresh near-term low in early-March. The bounce in the pair has been working within a bullish channel that saw a topside breakout of the February bearish trend-line after the reveal of the UK spring statement.

- At this point, bulls have appeared to grow bashful just below the 1.4000 psychological level, helping to illustrate the importance of this price for near-term resistance. A break-above this level opens the door for topside setups, targeting prior areas of resistance around 1.4070, and 1.4142.

- Are you looking to improve your trading approach? Check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

Want to see how traders are currently positioned in GBP/USD? Click here for GBP/USD Sentiment.

February Blues Lead to March Gains

The British Pound had a rough month of February, against both the US Dollar and the Japanese Yen. While GBP/JPY shed more than 1,000 pips in its down-side run, GBP/USD fell by a more modest but still impressive 500 from the first day of February to the first day of March. This is especially notable considering that the US Dollar wasn’t exactly burning-higher on any charts, as prices remain near those three year-lows despite an expanding range.

That low that was set in GBP/USD earlier in the month has led into a bullish channel with price action now fast re-approaching the 1.4000 psychological level. This included a top-side breakout yesterday of a bearish trend-line that had previously helped to hold the highs since late-January.

GBP/USD Four-Hour Chart: Bullish Channel, Bullish Breakout above Bearish Trend-Line

gbpusd four hour chart

Chart prepared by James Stanley

Bulls Get Shy Ahead of 1.4000

That bullish pattern has been tempered a bit over the past 24 hours as price action made a fast-approach towards the 1.4000 psychological level. After coming within pips of a re-test, prices have broken back down until finding a bit of support off of 1.3925; which is very near the 1.3930 resistance that we were following last week.

GBP/USD Hourly Chart: Bulls Shy Away From 1.4000, Support Shows around Prior Resistance

gbpusd hourly chart

Chart prepared by James Stanley

Breaks Above 1.4000 to Re-Open the Door to Top-Side Approaches

At this stage, the big question is whether the longer-term bullish trend in Cable might be ready for resumption. This up-trend was quite pronounced as we traded through January, and the February pullback brought resumption very much into the question; but with the bullish break of the February trend-line yesterday, as driven by yesterday’s unveil of the UK’s spring statement, the potential exists for further topside run.

GBP/USD Daily Chart: Longer-Term Up-Trend Intact

gbpusd daily chart

Chart prepared by James Stanley

Near-Term Setups into Longer-Term Trends

A break above 1.4000 could further reinforce this bullish continuation potential, opening the door to a further topside response in the pair. Above 1.4000, potential resistance levels at 1.4070, 1.4142, and then the psychological level of 1.4250 could be interesting areas to investigate for profit target potential.

gbpusd hourly chart

Chart prepared by James Stanley

To read more:

Are you looking for longer-term analysis on GBP/USD? Our DailyFX Forecasts for Q1 have a section specifically for GBP/USD. We also offer a plethora of resources on our GBP/USD page, and traders can stay up with near-term positioning via our IG Client Sentiment Indicator.

--- 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