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.

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
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
Wall Street
Bearish
Gold
Bullish
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:💶 ECB President Lagarde Speech due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Heads Up:💶 Eurogroup Video Conference due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Chinese Foreign Ministry: Noticed Report on US halting Huawei supply Urge US to withdraw wrong decision US Huawei move damaging internet supply chains - BBG
  • Canadian Dollar Outlook: USD/CAD Rebound May Continue Ahead of BoC - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/18/Canadian-Dollar-Outlook-USDCAD-Rebound-May-Continue-Ahead-of-BoC.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CAD $USDCAD https://t.co/xfAI9M7wi0
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/cP7ZhDHoNA
  • Heads Up:🇨🇳 FDI (YTD) YoY (DEC) due at 07:00 GMT (15min) Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-01-18
  • Wall Street Futures Update: Dow Jones (-0.133%) S&P 500 (-0.193%) Nasdaq 100 (-0.184%) [delayed] -BBG
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/dPj0seqzQS
  • An upbeat China Q4 GDP reading sent mainland and HK stocks higher, but failed to lift stocks in the rest of Asia: - CSI 300 (+1.20%) - Shanghai Composite (+0.91%) - Hang Seng (+0.65%) - Nikkei 225 (-1.01%) - ASX 200 (-0.78%) - Straits Times (-0.80%)
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in NZD/USD are at opposite extremes with 68.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dNtaWoHOAB
Sterling Price Outlook: British Pound Breakout at Risk- GBP/USD Levels

Sterling Price Outlook: British Pound Breakout at Risk- GBP/USD Levels

2020-04-14 15:30:00
Michael Boutros, Strategist

Sterling Technical Price Outlook: GBP/USD Trade Levels

  • Sterling technical trade level update – Daily & Intraday Charts
  • GBP/USD recovery testing downtrend resistance
  • British Pound long-side vulnerable into 1.27

The British Pound has rallied more than 10% against the US Dollar off the March lows with the rally taking Cable towards longer-term downtrend resistance. While the medium-term outlook remains constructive, the immediate advance may be vulnerable here as price approaches key technical resistance. These are the updated targets and invalidation levels that matter on the GBP/USD price charts. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Cable trade setup and more.

Starts in:
Live now:
Jan 25
( 13:01 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

New to Forex Trading? Get started with this Free Beginners Guide

Sterling Price Chart – GBP/USD Daily

Sterling Price Chart - GBP/USD Daily - British Pound vs US Dollar Trade Outlook - Cable Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; GBP/USD on Tradingview

Technical Outlook: In my latest Sterling Price Outlook we noted that British Pound reversal was testing initial resistance hurdles into the close of the week with a topside breach exposing, “subsequent resistance objectives at the 2018 low-week close at 1.2582 and a key technical confluence at 1.2717/54- a region defined by the 61.8% retracement and the 2019 yearly open.

Cable broke above the 61.8% retracement of the March range at 1.2518 with the rally taking out targets into 1.2582. The focus now is on a close with respect to the sliding parallel (magenta)- a close below would risk a near-term pullback in price. Broader bullish invalidation now raised to 1.2195 with a breach higher from here eyeing the 75% parallel (currently ~1.2670s) backed by critical resistance steady at 1.2717/54.

Sterling Price Chart – GBP/USD 120min

Sterling Price Chart - GBP/USD 120min - British Pound vs US Dollar Trade Outlook - Cable Technical Forecast

Notes: A closer look at Sterling price action shows GBP/USD trading within the confines of the ascending pitchfork formation with cable attempting to breach the 75% parallel today in New York. Topside resistance objectives are eyed at the highlighted slope confluence near ~1.2670s backed by 1.2710 and 1.2753- look for a more significant reaction there IF reached. Initial support rests at 1.2515 backed by the weekly open at 1.2461 and the post-Brexit low-week close at 1.2433- weakness beyond this zone would risk a larger correction with near-term bullish invalidation now set to 1.2328.

GBP Forecast
GBP Forecast
Recommended by Michael Boutros
Download our latest quarterly GBP/USD Price Forecast
Get My Guide

Bottom line: The Sterling breakout is approaching downtrend resistance targets and leaves the immediate advance at risk heading into 1.2710/53. From a trading standpoint, look to reduce long-exposure / raise protective stops on a stretch towards the upper parallel- look for possible topside exhaustion there IF reached. Ultimately a larger pullback may offer more favorable entries closer to uptrend support. Review my latest British Pound Weekly Price Outlook for a closer look at the longer-term GBP/USD technical trade levels.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Sterling Trader Sentiment – GBP/USD Price Chart

Sterling Trader Sentiment - GBP/USD Price Chart - British Pound vs US Dollar Trader Positioning - Cable Trade Outlook
  • A summary of IG Client Sentiment shows traders are net-long GBP/USD - the ratio stands at +1.38 (58% of traders are long) – bearish reading
  • Long positions are2.36% higher than yesterday and 16.09% higher from last week
  • Short positions are1.81% higher than yesterday and 4.91% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger GBP/USD-bearish contrarian trading bias from a sentiment standpoint.
GBP/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 9% 10% 10%
Weekly -5% 13% 4%
Learn how shifts in GBP/USD retail positioning impact trend
Get My Guide

---

Key UK / US Data Releases

UK / US Data Releases - GBP/USD Event Risk - Economic Calendar

Economic Calendar - latest economic developments and upcoming event risk.

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES