GBP/USD Rips to Persistent Resistance

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Sterling Technical Price Outlook: GBP/USD Weekly Trade Levels

  • Sterling technical commerce degree replace – Weekly Chart
  • GBP/USD rips in direction of 2021 downtrend resistance- risk for topside exhaustion
  • Resistance 1.3658, 1.3746 (key) – help 1.3494

The British Pound is making an attempt to mark a fourth consecutive weekly advance towards the US Dollar with GBP/USD now approaching technical resistance forward of key US inflation information. We’re looking out for attainable inflection up right here as Cable approaches multi-month resistance at multi-month highs. These are the up to date targets and invalidation ranges that matter on the GBP/USD weekly chart. Review my newest Strategy Webinar for an in-depth breakdown of this Sterling technical setup and extra.

Sterling Price Chart – GBP/USD Weekly

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

Notes: Sterling posted a spread of greater than 7.6% final 12 months with a reversal from key technical resistance close to the 1.43-handle plunging into the 1.32-handle late within the 12 months. A rebound off downtrend help in December has carried into the brand new 12 months with a rally of greater than 3.5% off the 2021 lows now approaching resistance on the multi-month downtrend. So is it time to fade or is that this establishing for a bigger breakout for the British Pound?

Weekly resistance stands on the higher parallel of the descending pitchfork we’ve been monitoring off the 2021 highs / 2017 swing excessive at 1.3658– a breach / weekly shut above this threshold is required to maintain the rapid rally viable with such a state of affairs exposing confluent resistance across the 52-week shifting common close to ~1.3750s. Initial weekly help rests on the 2017 high-week shut at 1.3494 with a break of the month-to-month opening-range lows at 1.3431 wanted to shift the broader focus decrease once more within the Pound.

For an entire breakdown of Michael’s buying and selling technique, evaluate his Foundations of Technical Analysis collection on Building a Trading Strategy

Bottom Line: Sterling is making an attempt a fourth consecutive weekly advance and takes worth in direction of downtrend resistance simply higher- danger for exhaustion. From a buying and selling standpoint, a very good zone to cut back long-exposure / increase protecting stops on a stretch in direction of 1.3658 IF reached- search for a response there. Stay nimble into key US inflation information tomorrow and watch the weekly shut for steerage right here. I’ll publish an up to date Sterling Price Outlook as soon as we get additional readability on the near-term GBP/USD technical commerce ranges.

Sterling Trader Sentiment – GBP/USD Price Chart

Sterling Trader Sentiment - GBP/USD Price Chart - British Pound vs US Dollar Retail Positioning

  • A abstract of IG Client Sentiment exhibits merchants are net-short GBP/USD – the ratio stands at -1.20 (45.45% of merchants are lengthy) – usually weak bullish studying
  • Long positions are 8.05% increased than yesterday and 11.73% decrease from final week
  • Short positions are0.49% increased than yesterday and 27.23% increased from final week
  • We usually take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests GBP/USD costs could proceed to rise. Traders are much less net-short than yesterday however extra net-short from final week. The mixture of present positioning and up to date adjustments provides us an additional combined GBP/USD buying and selling bias from a sentiment standpoint.

UK / US Economic Calendar

UK / US Economic Calendar - GBP/USD Weekly Event Risk - US Inflation

Economic Calendarnewest financial developments and upcoming occasion danger.

Previous Weekly Technical Charts

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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