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
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/DSp7f3YuAx
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/HNqHcbL6vk
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/FbepD4RaFg
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
Sterling Outlook: GBP/USD Breakout Targets 2019 / 2020 Yearly Highs

Sterling Outlook: GBP/USD Breakout Targets 2019 / 2020 Yearly Highs

Michael Boutros, Strategist

Sterling Technical Price Outlook: GBP/USD Weekly Trade Levels

  • Sterling technical trade level update – Weekly Chart
  • GBP/USD breakout approaching resistance at 2019 / 2020 highs
  • Critical resistance 1.3494– Weekly support 1.3250
Advertisement

The British Pound is attempting to mark a fifth consecutive weekly advance against the US Dollar into the open of December trade with GBP/USD up than 0.8% ahead of the New York close on Tuesday. A rally of more than 6% off the September lows takes price towards a critical resistance zone near multi-year downtrend extremes – we’re looking for price inflection here early in the month with the immediate advance vulnerable on a push into this key threshold. 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 technical setup and more.

Sterling Price Chart - GBP/USD Weekly

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

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

Notes: In last month’s Sterling Weekly Price Outlook we noted to, “be on the lookout for possible topside exhaustion into 1.3250 with the broader advance vulnerable while below.” GBP/USD broke & closed above this key zone one week later before resuming higher with the advance now approaching the next major lateral resistance pivot at the 2017 high-week reversal close at 1.3494. Note that the upper parallel of the multi-year descending pitchfork formation rests just below this threshold – we’re looking for a reaction up here.

A weekly close above 1.3494 would be needed to validate a breakout of multi-year downtrend resistance with such a scenario exposing 1.3675 and the 2018 high-week close at 1.3997. Initial weekly support now rests at the yearly open / 61.8% Fibonacci retracement at 1.3245/50 backed by the May trendline / channel support, currently ~1.2950s. Ultimately a close below confluence support at 1.2693-1.2754 would be needed to mark resumption of the broader 2018 downtrend.

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

Bottom Line: The Sterling rally is approaching broader downtrend resistance near the 2019 / 2020 yearly highs and we’re looking for a reaction early in the month for guidance. From a trading standpoint, look to reduce long-exposure / raise protective stops on a probe higher here with a weekly close above 1.3194 needed to suggest a larger breakout is underway. Pullbacks should be limited to the yearly open at 1.3250 IF price is indeed heading higher. Review my latest Sterling Price Outlook for a closer look at the near-term GBP/USD technical trade levels.

Sterling Trader Sentiment - GBP/USD Price Chart

Sterling Trader Sentiment - GBP/USD Price Chart - Cable Technical Forecast - Pound Outlook
  • A summary of IG Client Sentiment shows traders are net-short GBP/USD - the ratio stands at -1.42 (41.36% of traders are long) – weak bullish reading
  • Long positions are16.54% higher than yesterday and 12.56% higher from last week
  • Short positions are11.34% lower than yesterday and 4.74% lower 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. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current GBP/USD price trend may soon reverse lower despite the fact traders remain net-short.

---

Key UK / US Data Releases

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

Economic Calendar - latest economic developments and upcoming event risk.

Previous Weekly Technical Charts

--- 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