Birmingham , UK

British Pound Forecast: GBP/USD Rally Fizzles- Battle Traces Drawn


British Pound Technical Value Outlook: GBP/USD Weekly Commerce Ranges

  • Sterling technical commerce stage replace – Weekly Chart
  • GBP/USD units vary under key pivot zone- danger for check of yearly downtrend resistance
  • Weekly resistance 1.1414/80 (key), 1.1650, 1.1843-1.1950 – Assist 1.0923, 1.0790-1.0840, 1.0520

The British Pound rallied greater than 0.6% towards the US Greenback this week with GBP/USD carving the October opening-range just under a key resistance pivot. The specter of a bigger restoration throughout the broader yearly downtrend stays and the main focus is on a breakout of the month-to-month vary for steerage. These are the up to date targets and invalidation ranges that matter on the GBP/USD weekly chart heading into October. Evaluation my newest Technique Webinar for an in-depth breakdown of this Sterling technical setup and extra.

British Pound Value Chart – GBP/USD Weekly


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

Notes: In my final British Pound Weekly Technical Forecast I famous that the GBP/USD, “restoration is now approaching the primary main check at a key pivot zone- on the lookout for attainable worth inflection / exhaustion off this mark. From a buying and selling standpoint, danger for some pullback right here – losses would should be restricted to 1.0790 to counsel a extra important low was registered final month.” The resistance area in focus was outlined by the 2020 / 1984 lows at 1.1414/80 and capped the advance final week with the pullback registering a low the month-to-month vary low at 1.0924 this week- was that the extent of the Sterling pullback? The jury remains to be out.

The main target now shifts to a breakout of the October opening-range with key assist regular on the 61.8% Fibonacci retracement of the September rally / weekly low-close at 1.0790-1.0840– a break / shut under this threshold is required to mark resumption of the broader downtrend in the direction of the 1985 low at 1.0520 and the decrease parallels. Broader bearish invalidation now lowered to the 2020 weekly low-close at 1.1650 – a breach above this threshold would denote a breakout of he yearly downtrend and counsel a extra important low was registered final month.

For an entire breakdown of Michael’s buying and selling technique, overview his Foundations of Technical Evaluation collection on Constructing a Buying and selling Technique

Backside Line: On the lookout for extra chop / sideways worth motion within the British Pound with the give attention to a breakout of the October opening-range (1.0924-1.1480). From a buying and selling standpoint, losses ought to nonetheless be restricted to 1.0790 IF worth is heading increased for a check of downtrend resistance. I’ll publish an up to date Sterling short-term commerce outlook as soon as we get additional readability on the near-term GBP/USD technical commerce ranges.

British Pound Dealer Sentiment – GBP/USD Value Chart


  • A abstract of IG Shopper Sentiment exhibits merchants are net-long GBP/USD – the ratio stands at +1.08 (51.89% of merchants are lengthy) – sometimes impartial studying
  • Lengthy positions are 5.20% decrease than yesterday and 13.19% decrease from final week
  • Quick positions are 11.45% decrease than yesterday and 1.36% increased from final week
  • We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests GBP/USD costs might proceed to fall. Merchants are extra net-long than yesterday however much less net-long from final week. The mixture of present positioning and up to date adjustments provides us an extra combined GBP/USD buying and selling bias from a sentiment standpoint.

UK / US Financial Calendar


Financial Calendarnewest financial developments and upcoming occasion danger.

Lively Weekly Technical Charts

  • Canadian Greenback (USD/CAD)
  • Gold (XAU/USD)
  • S&P 500, Nasdaq & Dow
  • US Greenback Index (DXY)
  • Euro (EUR/USD)
  • Crude Oil (WTI)
  • Australian Greenback (AUD/USD)
  • Japanese Yen (USD/JPY)

— Written by Michael Boutros, Technical Strategist with DailyFX

Observe Michael on Twitter @MBForex

DailyFX offers foreign exchange information and technical evaluation on the traits that affect the worldwide forex markets.

Leave a comment