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
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
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • What are some factors impacting Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd https://t.co/dRmLKUEaAM
  • 🇫🇮 GDP Growth Rate YoY Final (Q3) Actual: -2.7% Previous: -6.2% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate QoQ Final (Q3) Actual: 3.3% Previous: -3.9% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate QoQ Final (Q3) Actual: 3.3 Previous: -3.9% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate QoQ Final (Q3) Actual: 3.3 Previous: -4.5% https://www.dailyfx.com/economic-calendar#2020-11-27
  • 🇫🇮 GDP Growth Rate YoY Final (Q3) Actual: -2.7 Previous: -6.4% https://www.dailyfx.com/economic-calendar#2020-11-27
  • Heads Up:🇫🇮 GDP Growth Rate QoQ Final (Q3) due at 06:00 GMT (15min) Previous: -4.5% https://www.dailyfx.com/economic-calendar#2020-11-27
  • Heads Up:🇫🇮 GDP Growth Rate YoY Final (Q3) due at 06:00 GMT (15min) Previous: -6.4% https://www.dailyfx.com/economic-calendar#2020-11-27
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.09%, while traders in NZD/USD are at opposite extremes with 73.48%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/b4kJ0Qob1K
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.30% 🇳🇿NZD: 0.19% 🇦🇺AUD: 0.18% 🇪🇺EUR: 0.08% 🇬🇧GBP: 0.08% 🇨🇦CAD: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/DwUkJlYg07
Sterling Outlook: Pound Rebound Remains Precarious- GBP/USD Levels

Sterling Outlook: Pound Rebound Remains Precarious- GBP/USD Levels

2020-10-19 18:30:00
Michael Boutros, Strategist
Share:

Sterling Technical Price Outlook: GBP/USD Weekly Trade Levels

  • Sterling technical trade level update – Weekly Chart
  • GBP/USD rebound vulnerable while below yearly open resistance
  • Key resistance 1.3175-1.3250 – Critical support 1.2693-1.2754
Advertisement

The British Pound is up more than 0.4% against the US Dollar into the weekly open but keeps Sterling within the confines of a key price range we’ve been tracking for weeks now. The weekly rebound may have some steam near-term but the broader risk still remains tilted to the downside with the immediate focus on a break of a key price range. These are the updated targets and invalidation levels that matter on the GBP/USD weekly technical chart. Review my latest Strategy Webinar for an in-depth breakdown of this Cable trade setup and more.

Starts in:
Live now:
Nov 30
( 13:11 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

Sterling Price Chart - GBP/USD Weekly

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

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

Notes: In my last Sterling Weekly Price Outlook we noted that GBP/USD was, “testing a critical medium-term support zone and the immediate focus is on inflection off this threshold.” The zone in focus was 1.2693-1.2754- a region defined by the 38.2% retracement of the yearly range, the 2018 low-week close and the 2019 objective yearly open. A rebound off this key zone in late September gathered pace into the October open with Sterling rallying more than 3.2% off the recent lows.

The recovery failed last week at the 50% retracement (high registered at 1.3084) - a pullback off this mark keeps the focus on a break of the 1.2693-1.3080 range for guidance with the broader weighted to the downside while below critical resistance at 1.3175/1.3250- a region defined by the 61.8% Fibonacci retracement of the September range / 2018 decline and the 2020 yearly open. A break / close below key support at 1.2693-1.2754 is needed to mark resumption of the broader downtrend with such a scenario exposing the June low-day close / 2018 low at 1.2478/81.

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

Bottom Line:Last week’s British Pound price reversal keeps the focus on a break of the recent range for guidance with the broader risk still lower below the yearly open. From a trading standpoint, “the risk remains for some recovery off this mark but look for topside exhaustion ahead of 1.3175 IF price is heading lower with a break / close sub-1.2693 needed to shift the broader focus back to the downside. I’ll publish and updated Sterling Price Outlook once we get further clarity on the near-term GBP/USD technical trade levels.”

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

Sterling Trader Sentiment - GBP/USD Price Chart

Sterling Trader Sentiment - GBP/USD Price Chart - British Pound vs US Dollar Trade Outlook - Cable Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-short GBP/USD - the ratio stands at -1.57 (38.96% of traders are long) – bullish reading
  • Long positions are1.85% lower than yesterday and 16.77% lower from last week
  • Short positions are29.90% higher than yesterday and 0.24% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger GBP/USD-bullish contrarian trading bias from a sentiment standpoint.
GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 17% -9% -1%
Weekly 14% 9% 11%
Learn how shifts in GBP/USD retail positioning impact trend
Get My Guide

---

Key UK / US Data Releases

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

Economic Calendar - latest economic developments and upcoming event risk.

Previous Weekly Technical Charts

Forex for Beginners
Forex for Beginners
Recommended by Michael Boutros
New to Forex Trading? Get started with this Beginners Guide
Get My Guide

--- Written by Michael Boutros, Technical 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