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
More View more
Real Time News
  • US #Dollar Technical Setups: $USDCAD, $AUDUSD, #SPX, #Gold, #Oil & #Bitcoin (Webinar Archive - https://t.co/xC3cZnWHIc
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.12% 🇪🇺EUR: 0.12% 🇯🇵JPY: 0.02% 🇨🇦CAD: -0.01% 🇦🇺AUD: -0.03% 🇬🇧GBP: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/g7rwo6k9lq
  • RT @MoodysInvSvc: Amid a strong rebound across advanced economies, we expect global trade to grow 9%-11% in 2021, recovering from around a…
  • Japanese Yen Technical Forecast: USD/JPY, EUR/JPY, GBP/JPY, AUD/JPY https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/10/18/Japanese-Yen-Technical-Forecast-USD-JPY-USDJPY-EUR-JPY-EURJPY-GBP-JPY-GBPJPY-AUD-JPY-AUDJPY.html https://t.co/O5H2kE8stk
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.22% France 40: 0.03% Germany 30: 0.00% Wall Street: -0.02% FTSE 100: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qJgrX3Z516
  • China GDP slowed faster than expected, Fed rate forecasts are soaring and the first Bitcoin ETF is due to trade. DailyFX's @JohnKicklighter discusses these events and their market impact to start the week! https://t.co/uqGVNREyDE
  • After running up to around $62.5k over the weekend, Bitcoin has faded back to the $61k level as traders wait for the all-clear from the SEC. Get your #btc market update from @nickcawley1 here:https://t.co/TjwcjyjORb https://t.co/FGVZMnX03v
  • RT @samueltombs: The Governor has been misrepresented in this article that has sparked a huge rise in near-term interest rate expectations…
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.08% 🇪🇺EUR: 0.03% 🇯🇵JPY: -0.01% 🇨🇭CHF: -0.10% 🇦🇺AUD: -0.13% 🇬🇧GBP: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/fWF6OV2JsY
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.01% Wall Street: -0.14% FTSE 100: -0.46% Germany 30: -0.82% France 40: -0.94% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/IiXnZJpPbn
GBP/USD Tests A Key Chart Point - British Pound vs USD Price Forecast

GBP/USD Tests A Key Chart Point - British Pound vs USD Price Forecast

Mahmoud Alkudsi, Analyst

GBP/USD Price Technical Outlook

GBP/USD Price – Multi Week Low

On Friday, Cable tumbled to its lowest level in over two months at 1.2881, then closed the weekly candlestick in the red with 2.4% loss. This week, the market reversed higher as some shorts seemed to cover.

Alongside that, the Relative Strength Index (RSI) rose from 40 to 45 reflecting a weaker downtrend move.

GBP/USD DAILY PRICE CHART (Sep 15, 2018 – FEB 12, 2020) Zoomed out

GBPUSD daily price chart 12-02-20 Zoomed out

GBP/USD DAILY PRICE CHART (SEP 20 – FEb 12, 2020) Zoomed IN

GBPUSD daily price chart 12-02-20 Zoomed in

From the daily chart, we noticed that at the start of last week GBP/USD declined then closed below the 50-day average generating a bearish signal. On Thursday, the market fell to a lower trading zone 1.2774 – 1.2965. Yet, this week some bears pulled back allowing the pair to rally then test the high end of the zone.

A close above the high end may lead more bears to exit the market causing GBPUSD to rush towards 1.3048. Further close above this level opens the door for a possible push towards 1.3300 handle. Nevertheless, the weekly resistance level and area marked on the chart (zoomed in) should be considered.

In turn, any failure in closing above the high end of the zone may encourage GBPUSD bears to comeback and press towards the low end of the zone, contingent on clearing the weekly support level underlined on the chart.

GBP/USD Four Hour PRICE CHART (Jan 28 – FEB 12, 2020)

GBPUSD four hour price chart 12-02-20

Looking at the four-hour chart, we notice this month GBP/USD started a downtrend move creating lower highs with lower lows. However,the price developed inverted head and shoulders pattern, then yesterday broke above the neckline located at 1.2947 hinting to rally above 1.3000 handle.

Thus, a break above 1.3006 could lead the market towards 1.3048. Although, the daily resistance level underscored on the chart should be kept in focus. On the flip-side, a break below 1.2925 could send GBPUSD towards 1.2876. Nonetheless, the daily support level printed on the chart should be watched closely.

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

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