Technical Analysis

GBPUSD Technical Outlook: 20-Month Spike Low Might Be Re-Examined

GBPUSD Technical Evaluation

GBPUSD weekly chart ominous.

March 2017 low at 1.2109 unlikely to be examined.

We’ve got lately launched our Q1 2019 Buying and selling Forecasts for a variety of Currencies and Commodities, together with GBPUSD with our elementary and medium-term time period technical outlook.

GBPUSD Weekly Chart – Ominous Bearish Candle Forming

The every day chart is exhibiting a possible bearish engulfing candle being constructed in direction of the tip of the week – a unfavourable chart set-up – regardless of the pair nearing oversold territory, utilizing the RSI indicator. Whereas this week’s strikes have been primarily pushed by the US greenback, the dearth of curiosity/energy in Sterling is worrying for bulls, particularly forward of the Brexit vote, w/c January 14. The weekly chart reveals the upside capped by the underside of the 20-/50-day transferring common cloud just under 1.2900, a stage final seen in mid-November 2018.To the draw back a re-test of the 1.2435 print is feasible however additional falls could also be tempered with the March 2017 low at 1.2109 unlikely to fret, all issues being equal. With the Brexit vote on the horizon, Sterling positioning could also be diminished including a contact of short-term volatility into the combo.

GBPUSD Weekly Worth Chart (August 2016 – January four, 2019)

GBPUSD Weekly Price Chart

On the every day chart, the 20-day transferring common is offering short-term resistance and could also be sufficient for the pair to sink again beneath 1.2600. Wednesday’s outsized candle – 1.2435 to 1.2775 – ought to present the buying and selling vary for the near-term with present value motion favouring a re-test of the decrease certain.

GBPUSD Each day Worth Chart (June 2018 – January four, 2019)

GBPUSD Daily Price Chart

Fundamentals are additionally Sterling impartial to unfavourable with PM Might’s contentious Brexit invoice up for additional dialogue subsequent week with a robust probability that it will likely be rejected when voted on w/c January 14. The US greenback has additionally simply kicked bears into the lengthy grass after a robust Labour report, whereas the newest UK providers PMI factors to tepid development of simply zero.1% for the UK in This autumn.

— Written by Nick Cawley, Analyst

To contact Nick, electronic mail him at nicholas.cawley@ig.com

Observe Nick on Twitter @nickcawley1

Different Weekly Technical Forecasts:

Australian Greenback Forecast: AUD/USD, AUD/CAD & EUR/AUD Costs Eye Technical Reversal Patterns


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