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.

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
Gold
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
GBP/USD Testing Five-Year Resistance: Breakout Ahead?

GBP/USD Testing Five-Year Resistance: Breakout Ahead?

Dimitri Zabelin, Analyst

GBP/USD Price Chart, British Pound Forecast –TALKING POINTS

  • GBP/USD is on the edge of breaking five-year resistance
  • Break above with follow-through would mark tectonic shift
  • Does the multi-month perspective support upside potential?

Learn how to use political-risk analysis in your trading strategy!

GBP/USD is on the cusp of breaking above descending five-year resistance as the British Pound soars almost six percent against the US Dollar in less than a week. The pair just recently broke through several upside barriers, rising to the highest level since early May as the EU and UK agreed on a Brexit deal.

GBP/USD – Daily Chart

Chart showing GBP/USD

GBP/USD chart created using TradingView

Buyers now face minor inflection point barriers at 1.2866 and 1.3015, but the next significant hurdle for upward GBP/USD progress looks to be at 1.3177. Reversing back below the 1.2751-84 congestion area is probably a bare-minimum prerequisite to neutralizing immediate upward pressure.

Looking at a weekly chart contextualizes the significance behind GBP/USD’s current positioning. If upside momentum remains strong and the pair breaks above descending resistance (red channel) with follow-through, it may mark a tectonic shift in the overall price trajectory. A breach could expose the pair to rise over nine percent until it hits the next layer of significant resistance at 1.4377.

GBP/USD – Weekly Chart

Chart showing GBP/USD

GBP/USD chart created using TradingView

Nevertheless, the way toward structural reversal is a long and difficult one. A dense block of back-to-back resistance levels will face prices soon after any upside break, warning that scope for long-term progress may be limited. All the same, GBP/USD may be establishing a base from which to reverse some of its losses over the past half-decade.

GBP/USD – Monthly Chart

Chart showing GBP/USD

GBP/USD chart created using TradingView

BRITISH POUND TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES