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
GBP/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
More View more
Real Time News
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • 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/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • 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/FFMy5O9YoY
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
Dow Jones, S&P 500 Outlook – Watch How Price Action Unfolds in Down-move

Dow Jones, S&P 500 Outlook – Watch How Price Action Unfolds in Down-move

Paul Robinson, Strategist

Dow Jones, S&P 500 Highlights:

  • Dow Jones working its way back lower
  • S&P 500 struggling around broken bull market line

A few scenarios for the Dow & S&P to consider on weakness

Last week, the discussion was about whether the low was in for now, with the focus turning towards gap-fills on the top-side. While the big gap in the S&P from March 12 up to 2741 still looks likely to get filled at some point in the relatively near future, the question is how jagged the path to that level (maybe higher) will be.

The pullback in progress could end soon and a higher-low develop, a sort of half-test of the March low, if you will. But if momentum starts to pick up then the likelihood of getting a full retest of the 2191 low or worse quickly increases.

Ideally, on the move lower we get a sort of ‘jab-and-go’ where the market sharply turns back to the top-side in a manner that gives confidence that it has rejected lower levels. This could set up for another leg towards 2641 and then the first major gap-fill at 2741.

However, if momentum starts to pick up then we will want to see how price behaves on approach to the 2191 low. A rejection at that juncture could then constitute the retest that many are looking for, or, if it breaks a quick flush may happen as the market panics before reversing higher.

In any event, it appears we are near a low if it hasn’t already been put in, but trading is going to be a bit tricky. Traders need to remain flexible and ready to adjust their outlook quickly to rapidly-changing circumstances.

S&P 500 Daily Chart (retest or worse?)

S&P 500 daily chart, retest or worse

The Dow Jones is of course acting similarly since tagging the 2015 low as a bottom for now. Using the same template outlined about, 18213 is the big low to watch. On the top-side resistance clocks in at 22595 and then the March 12 gap-fill up to 23553.

Dow Jones Daily Chart (levels to watch)

Dow jones daily chart

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