British Pound- US Dollar (GBP/USD)
British Pound-US Dollar (GBP/USD) Analysis
(Please refer daily currency charts and not short-term charts e.g. hourly charts. All technical analysis indicators for the weekly GBP/USD outlook and forecast are based on the daily forex charts and in some cases 4-hourly charts. The trading strategies and forecast is based on the technical and fundamental outlook.)
Pound Sterling-US Dollar (GBP/USD) Forecast:
Previous Outlook of GBP/USD :
"If support in the range of 1.5962/ 1.6000 and holds and a break over 1.5962/1.5965 takes place then the focus will turn back towards upside for a retest of 1.6130 first and with any break of that towards 1.6175 of November 1st. GBP/USD had found strong resistance near this level recently. On October a strong resistance was witnessed just 3 pips above this i.e. at 1.6178. Any decisive break above this and then the resistance near 1.6215/1.6220 should target a retest of 1.6309."
GBP/USD Outlook For This Week:
|Please check the relative strengths of recent economic releases and technical indications at following links as the base of this week's GBP/USD outlook. We recommend to check the economic strength meter on Fundamental Outlook page.|
|GBP/USD Fundamental Outlook||GBP/USD Technical Outlook|
British Pound - US Dollar (GBP/USD) went as high as 1.6307 but failed to touch the high of September 21st i.e. 1.6309 and went as low as 1.6152 before closing for the week at 1.6171.
The price action clearly indicate the underlying bullish sentiments but the failure to retest 1.6309 and the wide gap between the highs and the opening prices of the last 3 trading days' red candles make us expect some further downward consolidation initially.
On the down side we would expect a support neat 1.6130. This support is important from three angles. One the previous resistance which should work as support, second the current trend line support and third the psychological support of 1.6000 which should come into play before any break from 1.6100 territory to 1.6000. Please check this GBP/USD chart alert for the first 2 points mentioned here.
With the above mentioned supports holding well, any break above 1.6309 should take GBP/USD gains towards a strong resistance zone of 1.6400/1.6445. The psychological resistance of 1.6500 ranges should start coming into the picture in this zone.
On the downside any break below 1.6130 and then any sustained price action below 1.6120 will start neutralizing the outlook for any immediate gains and such a move should target a test of 1.6000 psychological level.
Strategies for Trading GBP/USD:
As mentioned above that though overall we are expecting further upward gains but there are strong possibilities for some more downward consolidation first. We would be looking forward to buying at the support levels mentioned but with tight stop-loss levels. Any short-selling position at current level would not have a stop-loss above 1.6245.
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For short term Forex trades, please refer to daily Technical analysis for British Pounds-US Dollars at GBP/USD analysis.
There can also be some news or some indications from technical indicators or chart patters which may suggest some major moves. Please check and share such observations about currency pairs in the Forex Alerts.
You may also check GBP/USD Correlation with other currency majors.
|GBP/USD Interest Rate Comparision|
(For Carry Trades)
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