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
Mixed
More View more
Real Time News
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/AU5jpWFHZB
  • UK cites new rule allowing MHRA to approve vaccine before EU - BBG
  • UK Government asks drug regulator to evaluate Oxford-AstraZeneca Vaccine - BBG
  • 🇯🇵 Foreign Bond Investment (21/NOV) Actual: ¥1,964.0B Previous: ¥1009.1B https://www.dailyfx.com/economic-calendar#2020-11-26
  • Heads Up:🇯🇵 Foreign Bond Investment (21/NOV) due at 23:50 GMT (15min) Previous: ¥1009.1B https://www.dailyfx.com/economic-calendar#2020-11-26
  • What are the six major stock types utilized by every trader? Learn here: https://t.co/6t70C00r1S https://t.co/mFCK62RXoq
  • President Donald Trump: Will give up power if electoral college votes for Biden - BBG
  • President Donald Trump says conceding is going to be a very hard thing to do - BBG
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/oWfy1SN26d
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.20% 🇨🇭CHF: 0.16% 🇪🇺EUR: -0.01% 🇦🇺AUD: -0.06% 🇨🇦CAD: -0.08% 🇬🇧GBP: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/n8HWYFhIBt
GBP/USD Technical Outlook: Looking Ahead to Potential Run-in with 13500

GBP/USD Technical Outlook: Looking Ahead to Potential Run-in with 13500

2020-11-17 12:00:00
Paul Robinson, Strategist
Share:

GBP/USD Highlights:

  • GBP/USD grinding its way higher towards a big level
  • 13500 has confluent resistance dating back many years
Advertisement

GBP/USD has been on a bit of a ‘jagged-tooth’ run, with momentum stalling just about the time it looks like it is ready to accelerate. Perhaps we see cable turn down here again soon before trying to resume higher, or just simply roll over, but if it can keep making its way higher a big test lies ahead.

The 13500-area is a big one, with long-term levels/lines in confluence. Two very important turning points are included, with the 2007 top having a trend-line project lower off of it over 2014/2020 highs, and the 2009 low having become influential a couple of times in the past year.

The most recent turn down from confluence was at the end of August, where the lines were in almost exact alignment. Since then the trend-line has further descended, putting it a little under 13500. But let’s not split hairs, we are talking about levels from over a decade ago, so a little latitude is needed.

Another test could bring some longer-term clarity, perhaps. Finding big-picture clarity in this market has been hard to do, with major FX pairs broadly rangebound for the better part of the last five years. A firm weekly close above 13500 could open up a path of much higher levels.

A rejection from resistance will bring less clarity as it continues to keep price contained. If the rejection were hard enough it may indicate that a sizable decline back towards the 2020 lows wants to develop, but will be a less compelling case than if we see a breakout.

For now, in wait-and-see mode. Maybe we will see an end-of-year move that surprises as the stage gets set for 2021.

GBP Forecast
GBP Forecast
Recommended by Paul Robinson
Check out the Q4GBP Forecast
Get My Guide

GBP/USD Monthly Chart (big intersection at ~13500)

gbp/usd monthly chart

GBP/USD Chart by TradingView

GBP/USD Daily Chart (grinding towards test)

gbp/usd daily chart

GBP/USD Chart by TradingView

Resources for Forex 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.

DISCLOSURES