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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
British Pound Outlook – GBP/USD Looking to Hold Support

British Pound Outlook – GBP/USD Looking to Hold Support

What's on this page

GBP/USD Technical Highlights:

  • GBP/USD backing into support, watch for it to hold
  • Congestion pattern (wedge) could be on the build

GBP/USD has gone into a fairly choppy mode of trading lately following the excitement leading up to and just after the general election last month. For now, Cable appears to be undergoing a digestion phase that if continues may help lead to another run later on.

But before getting ahead of ourselves, some work needs to be done on the charts. Support is currently being tested, a line that arrives via several lows over the past couple of months. It’s a clear line of support that offers traders a potentially good risk/reward spot, whether establishing a short-term or more intermediate-term position.

A hold here and rally could continue to see price action contract towards a fully developed wedge in the next couple of weeks. Ultimately, this would be seen as making for a strong bullish case given the primary trend since bottoming up in August and September.

If trend support should fail and price break below the December 23, 12904 level, then look for the 12800 area or worse, down to 12687, the 200-day, to come into play. A breakdown wouldn’t turn the trend entirely back in favor of shorts, but it would go a ways towards strengthening their case for broader weakness.

For now, looking to play support for what it is – support. From there, depending on price action, further maneuvers can be made to either add to a long exposure, or cut in favor of lower prices.

GBP Forecast
GBP Forecast
Recommended by Paul Robinson
Check out the GBP Fundamental/Technical Forecast
Get My Guide

GBP/USD Daily Chart (on support)

GBP/USD daily chart, on support

GBP/USD 4-hr Chart (wedge could be forming)

GBP/USD 4-hr chart, wedging could be forming

GBPUSD Charts by TradingView

***Updates will be provided on the above thoughts and others in the trading/technical outlook webinars held at 1030 GMT on Tuesday and Friday. If you are looking for ideas and feedback on how to improve your overall approach to trading, join me on Thursday each week for the Becoming a Better Trader webinar series.

Resources for Forex & CFD Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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