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.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
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
USD/JPY
Bearish
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • My pleasure! https://t.co/R7ArKNjCNO
  • The range in USD/CAD broke with aggression this week as CAD sellers pushed the currency after the Bank of Canada rate decision. Get your $USDCAD technical analysis from @JStanleyFX here: https://t.co/8oHoLLqvtR https://t.co/8ZXx6GbKAn
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here: https://t.co/CPmNJSgHXY https://t.co/RdM0cbyfSf
  • The $AUD is pressuring four-month trend support against its US counterpart as sellers fight to reassert the dominant, long-term downtrend. Get your market update from @IlyaSpivak here:https://t.co/Bup64Arva9 https://t.co/CpraRXneTJ
  • The British Pound may fall as #Brexit commences, but will the Bank of England cut rates? The US Dollar could rise if the Fed spooks markets with plans to unwind repo operations $GBPUSD #BoE #GBP #Sterling - https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2020/01/26/British-Pound-May-Yet-Fall-on-Brexit-BoE-and-Fed-Are-Risks.html?CHID=9&QPID=917702 https://t.co/v39NsmOCwa
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/5VQdkbIqTo
  • Last week was more of the same, a narrowing range following the UK general election fireworks; GBP/USD has a couple of clear signposts to keep an eye on. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/3pJfj0w2AX https://t.co/Cm6zhnBSGR
  • The $AUD is pressuring four-month trend support against its US counterpart as sellers fight to reassert the dominant, long-term downtrend. Get your market update from @IlyaSpivak here: https://t.co/Bup64Arva9 https://t.co/OLpavqPOVA
  • RT @globaltimesnews: A total of 1,052 cases of #coronavirus have been reported as of Jan 25 in #Hubei Province, with 129 in critical condit…
  • RT @FactSet: $SPX is reporting revenue growth of 2.9% for Q4, led by the Health Care (11%), Utilities (9%), and Communication Services (9%)…
British Pound vs USD Price Forecast: GBP/USD Signals Indecision, What’s Next?

British Pound vs USD Price Forecast: GBP/USD Signals Indecision, What’s Next?

2020-01-16 10:40:00
Mahmoud Alkudsi, Market Analyst
Share:

GBP/USD Technical Outlook

GBP/USD Price – No One in Control

Last week, GBP/USD repeated the previous week's scenario i.e. a rally then buyer's pull back ending the week with another Doji pattern. This week, Cable rebounded from 1.2954 -its lowest level in three weeks. With this, sellers missed out on an opportunity to lead the price. This resulted in a continuation of current market's indecision.

The Relative Strength Index (RSI) remained flat below 50 highlighting weak sellers and weaker buyers.

Just getting started?See our Beginners’ Guide for FX traders

GBP/USD DAILY PRICE CHART (April 25, 2018 – Jan 16, 2020) Zoomed out

GBPUSD daily price chart 16-01-20 Zoomed out
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Mahmoud Alkudsi
Improve your trading with IG Client Sentiment Data
Get My Guide

GBP/USD DAILY PRICE CHART (Oct 15 – Jan 16, 2020) Zoomed IN

GBPUSD daily price chart 16-01-20 Zoomed in

From the daily chart, we notice on Dec 23 GBP/USD rallied back to the old zone indicating that buyers were not done. Similar thing happened this week as the price rebounded twice nearby the low end of current trading zone 1.2965 - 1.3048 then closed above the 50-Day average generating an additional bullish signal.

A close above the high end of the zone could pave the way for buyers to lead GBPUSD towards 1.3300 handle contingent on clearing the weekly resistance levels underlined on the chart (zoomed in). Further close above this level may convince more buyers to join the rally and push towards 1.3515. In that scenario, a special attention should be paid to the weekly resistance levels as some traders could join/exit the market nearby these points.

On the other hand, a close below the high end of the zone reflects buyer’s hesitation. This could lead some of them to exit the market and reverse the pair’s direction towards the low end of the zone. Further close below the low end opens the door for sellers to take charge and press Cable towards 1.2774. Although, the weekly support levels and area marked on the chart should be considered.

GBP Forecast
GBP Forecast
Recommended by Mahmoud Alkudsi
Download our fresh Q1 British Pound Forecast
Get My Guide

GBP/USD Four Hour PRICE CHART (DEC 11 – Jan 16, 2020)

GBPUSD four hour price chart 16-01-20

Looking at the four-hour chart, we notice on Jan 7 GBP/USD spiked at 1.3232 then declined after and started a downtrend move creating lower highs with lower lows. Yesterday, the pair corrected higher as created a higher low at 1.2984.

A break above 1.3082 could push GBPUSD towards 1.3121. Yet, the daily resistance level underlined on the chart should be kept in focus. On the flip side, a break below 1.3013 may lead the price towards the low end of current trading zone discussed above on the daily chart.

See the chart to find out more about key levels Cable would encounter in a further bearish /bullish scenario.

Having trouble with your trading strategy?Here’s the #1 Mistake That Traders Make

Written By: Mahmoud Alkudsi

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES

News & Analysis at your fingertips.