GBPUSD traded in a range between 1.5561 and 1.5779 for several days. One more fall to test 1.5423 support is still possible, a breakdown below this level could signal resumption of the downtrend from 1.6164. Key resistance is now located at 1.5779, above this level will confirm that the downtrend from 1.6164 had completed at 1.5423 already, then the following upward movement could bring price to 1.6500 area.

Daily Forex Analysis

GBPUSD failed to break above 1.5779 resistance, and pulled back from 1.5768 yesterday, suggesting that lengthier sideways movement in a range between 1.5423 and 1.5779 is underway. Deeper decline to 1.5500 area to reach next cycle bottom is expected. Key resistance remains at 1.5779, only break above this level could trigger another rise towards 1.6500.

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GBP/USD Forex Technical Analysis Strategy The GBP/USD has broken and closed below some critical support levels into last week, reaching lows of 1.5570 before stalling. This downside momentum is expected to continue next week as prices have failed at the 50% Fibonacci retracement of the daily downtrend and trendline support on the hourly charts has [...]

GBPUSD is facing 1.5891 support, as long as this level holds, the fall from 1.6164 is treated as consolidation of uptrend from 1.5272, and another rise to 1.6250-1.6300 area is still possible. However, a breakdown below 1.5891 will indicate that a cycle top has been formed at 1.6164 on 4-hour chart, then lengthier consolidation of uptrend could be seen, and the trading range would be between 1.5800 and 1.6164.

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Cross Currency Analysis – A look At The Price Action Today.

The market gave an interesting technical setup today which may have escaped the attention of some technical traders out there.  This brief post will look at the price action today and how cross currency correlations can be used to filter trades.

The three pairs below are GBP/USD, EUR/USD and USD/CHF.  If you look carefully you can see that the EUR and CHF had broken recent range high/lows respectively while GBP/USD was still lagging and trading near resistance. On top of this the dollar index had broken strong support so we knew it was a bearish dollar day at that moment in time.

Look back over your charts and these setups can often be found where the majors leave one pair behind.  Maybe open a seperate demo trading account and only take technical setups when you see this happen.  You may find the results are of interest.

Going to the lower timeframe chart we can see cable has a trendline breakout forming.  Knowing what we do at this stage regarding the other majors after our cross currency analysis could we have considered a long?

This currency pair did break higher…  The dollar bears could not hold price at GBP/USD and this was the end result.  If you like this post drop by to our site for further Forex market analysis. We cover currency correlation and relative strength in regular updates.

Any information or views found in this post are provided for educational reasons and do not in any way represent investment advice. The article author doesn’t guarantee the accuracy or completeness of this or any other information provided. Forex-FX-4X or the post authors will not accept liability for any losses arising directly, indirectly or because of reliance on any of the trading setups or associated analysis in any way. Be carefull out there.

GBPUSD traded in a range between 1.5631 and 1.5851 for several days. As long as 1.5631 support holds, the price action in the range could be treated as consolidation of uptrend from 1.5272, another rise to 1.6000 is still possible. On the other side, a breakdown below 1.5631 will indicate that lengthier correction of uptrend is underway, then deeper decline could be seen to 1.5500 area.

Being contained by 1.5327 support, GBPUSD rebounded from 1.5341, suggesting that a cycle bottom is being formed on 4-hour chart. Further rally would likely be seen in a couple of days, and target would be at 1.5800 zone. On the downside, another fall to re-test 1.5327 key support is still possible, a breakdown below this level could signal resumption of the longer term downtrend from 1.6617.

Daily Forex Analysis

The British Pound (GBP) appears to have broken out of a nasty downtrend which had seen world markets tank as the US dollar strengthened.   Problems in the Euro zone with their debt crisis increased fears in the marketplace which went into risk aversion mode.  “Operation Twist” by the US Fed also helped increase short-term demand for the US dollar which weighed on the Pound as well.

But now that there is seeming light at the end of the tunnel for Greece and the Euro debt crisis, markets have flipped to risk-taking mode and are looking to take back some of the last weeks’ losses.  The Pound is poised to receive the benefit of some of that risk appetite despite the economic environment in the UK.

The economy there has seemingly defied Central bankers and Finance officials who have seemingly been wrong for the past two years.  Inflation increased in the UK and the BOE’s belief that it would subside has not happened yet they haven’t done anything to combat inflation through rate hike increases citing a weak economy.

Now they are saying that the economy is seriously slowing down which could require further monetary easing, though the numbers just aren’t as bad as they would need to see.  If the Euro debt crisis is partially responsible for the decline in the growth of the global economy, then it stands to reason that if a solution can be found, economies will be able to grow again.

This seems to be the case in the UK, and so far the BOE lack of tinkering but increased rhetoric means that they likely won’t do anything next time around either.  Thus I think we could see a near-term move of GBP/USD back to 1.58, with a move back to 1.60 if we get more clarity from the Euro zone.

GBPUSD failed to break above the downtrend line on 4-hour chart, and continues its downward movement from 1.6453. Further fall could be expected in a couple of days, and next target would be at 1.5600 area. Key resistance is now at 1.5868, only break above this level could indicate that the fall from 1.6453 is complete.

Daily Forex Forecast

GBPUSD rebounded from 1.6208, suggesting that a cycle bottom has been formed on 4-hour chart. Range trading between 1.6208 and 1.6460 is expected in a couple of days, as long as 1.6460 resistance holds, the rise from 1.6208 is treated as consolidation of downtrend from 1.6617, and one more fall towards 1.6000 is still possible after consolidation.

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