- GBP/USD liberation stalls on Brexit fears – risk stays for technical miscarry while above 1.3164
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In this array we scale-back and take a demeanour during a broader technical design to benefit a bit some-more viewpoint on where we are in trend. Here are a pivotal targets cancellation levels that matter on a weekly draft for a British Poundvs US Dollar (GBP/USD). Review this week’s Strategy Webinar for an in-depth relapse of this setup and more.
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GBP/USD Weekly Price Chart
Notes: In final month’s Weekly Technical Perspective on a British Pound, we highlighted a vicious support section in GBP/USD at, “around ~1.3164. This segment is tangible by a 50% retracement of a post-Brexit allege and converges on a reduce median-line together simple trendline support fluctuating off a 2017 lows. So was that a low?”
So far, so good! Multiple attempts have unsuccessful to tighten next this threshold with Sterling rallying some-more than 2% off a lows. But with a new reorganization in a UK supervision threatening an orderly Brexit, a span is once again on a defensive. That said, a technical concentration has not altered and while cost could still see some downside near-term, a broader concentration is opposite this pivotal support zone.
Weekly insurgency stays solid during a connection of a median-line, a 2017 high-week annulment tighten and a 52-week relocating normal during 1.3480/94. Note that weekly RSI is attempting to stabilise above 40 here and serve highlights how pivotal of a turn this is. A mangle sub-40 in movement alongside a pierce sub-1.3164 in cost would display successive support objectives during 1.3027 and a 61.8% retracement during 1.2877.
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Bottom line: The broader decrease off a yearly highs stays during risk while above this support confluence. From a trade standpoint, I’ll be looking for depletion on a pullback to offer entries while above 1.3164.I’ll tell a scalp refurbish once we get some structure in near-term cost movement though daily trade levels are mostly unvaried from my prior GBP/USD Technical Outlook.
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GBP/USD Trader Positioning
- A outline of IG Client Sentiment shows traders are net-long GBP/USD- a ratio stands during +1.76 (63.8% of traders are long) – bearish reading
- Traders have remained net-long given April 20th; cost has changed 5.9% reduce given then
- Long positions are 5.0% reduce than yesterday and 11.6% reduce from final week
- Short positions are1.7% aloft than yesterday and 16.4% aloft from final week
- We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests GBP/USD prices might continue to fall. Yet traders are reduction net-long than yesterday and compared with final week. Recent changes in view advise that a stream GBP/USD cost trend might shortly retreat aloft notwithstanding a fact traders sojourn net-long.
See how shifts in GBP/USD retail positioning are impacting trend- Learn some-more about sentiment!
Relevant GBP/USD Data Releases
Economic Calendar– for a latest economic developments and upcoming event risk
Previous Weekly Technical Perspectives
- Weekly Technical Perspective on a Australian Dollar (AUD/USD)
- Weekly Technical Perspective on a Canadian Dollar (USD/CAD)
- Weekly Technical Perspective on a US Dollar (DXY)
- Weekly Technical Perspective on a Japanese Yen (USD/JPY)
- Weekly Technical Perspective on a Euro (EUR/USD)
— Written by Michael Boutros, Technical Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or hit him during firstname.lastname@example.org