Technical Analysis

Sterling (GBP) Weekly Technical Outlook: Taking a Submit-Rally Breather

GBPUSD and EURGBP Technical Evaluation

GBPUSD chart baulking on the 200-day transferring common.

EURGBP bouncing off oversold territory.

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

Final Week’s Sterling (GBP) Technical Outlook: GBPUSD, EURGBP and GBPNZD

GBPUSD Lengthy-Time period Transferring Common Resistance

GBPUSD has loved a robust run in 2019, choosing itself up from a 1.2435 low to the touch the 1.3000 stage on an enhancing basic backdrop. This yr’s mini-rally now sees GBPUSD touching the 200-day transferring common and Cable has failed at its first try to interrupt and shut above right here. One other try is anticipated shortly and if profitable, the 38.2% Fibonacci retracement stage at 1.3177 turns into the subsequent goal. This stage additionally coincides with the November 7 excessive. If this stage is closed above, the current collection of decrease highs shall be damaged, including an extra bullish nudge for the pair. GBPUSD have additionally made 4 greater lows in a row, so if 1.2832 – Thursday’s low – stays intact, the chart set-up for GBPUSD stays constructive.

GBPUSD Every day Value Chart (April 2018 – January 18, 2019)

GBPUSD Daily Price Chart

EURGBP Rebound Away From Oversold Territory

EURGBP is pulling again from its current two-month low print of zero.8762 and is again above zero.8800 because the RSI indicator exhibits the pair to be oversold within the short-term. Any additional rally will meet resistance at zero.8860 – the 50% Fibonacci retracement – simply forward of the 200-day transferring common at zero.8884. These ranges could show troublesome to interrupt if the basic background stays the identical, leaving EURGBP weak to an additional downturn. Horizontal help at zero.8723 earlier than a re-test of the November 13 low at zero.8655.

EURGBP Every day Value Chart (April 2018 – January 18, 2019)

EURGBP Daily Price Chart

DailyFX has an unlimited quantity of sources to assist merchants make extra knowledgeable selections. These embrace a completely up to date Financial Calendar, and a raft of regularly up to date Academic and Buying and selling Guides

— 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 Put together for Subsequent Large Strikes as AUD/JPY Might Reverse


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