British Pound Technical Forecast: GBP/USD, GBP/CAD, EUR/GBP
- GBP/USD weakened late final week, placing in the next low from January’s peak
- GBP/CAD outlook seems to be impartial after costs fall in need of placing in new yearly excessive
- EUR/GBP hidden bearish divergence might even see costs head again towards key help
GBP/USD Technical Forecast: Slightly Bearish
The British Pound made headway towards the US Dollar final week, however a surge within the US Dollar on Friday trimmed positive factors, ending round 1% increased. Before the late-week pullback, GBP/USD hit the best stage since mid-January earlier than costs broke down from a Head and Shoulders sample, falling to the 100-day Simple Moving Average.
A break decrease might push costs down towards the yearly low at 1.3356. Alternatively, additional energy would goal the 161.8% Fibonacci extension, a stage that served as resistance final week, earlier than aiming on the high-profile 200-day SMA. The development could favor a transfer decrease this week, contemplating costs put within the third increased low since early January.
GBP/USD – 8-Hour Chart
Chart created with TradingView
GBP/CAD Technical Forecast: Neutral
British Pound was additionally a gainer towards the Canadian Dollar, with GBP/CAD rising practically a full share level. However, the transfer increased fell simply in need of taking out the 2021 excessive, set in early January at 1.7313, but it surely nonetheless marks the best weekly candlestick shut of the yr. A bearish divergence was fashioned with the RSI oscillator making the next excessive whereas costs failed to take action.
That coincides with a weakening MACD oscillator, represented by the falling histogram, suggesting momentum has stalled out. A bullish cross between the 50- and 100-day SMAs supply a conflicting technical sign. That stated, the outlook stays extra impartial till costs take out the close by 2022 excessive, which might break the bearish divergence.
GBP/CAD – 8-Hour Chart
Chart created with TradingView
EUR/GBP Technical Forecast: Bearish
The Euro impressively defeated the Pound, with EUR/GBP rising 1.69% to the best stage since December 23. That transfer pierced the 50- and 100-day SMAs on that ascent. If costs proceed increased this week, the 200-day SMA could supply some resistance. Alternatively, if costs reverse decrease, a serious zone of resistance from 2016 could underpin costs. There can also be a hidden bearish divergence exhibiting between costs and the RSI oscillator (indicated by the purple traces on the chart). That is when costs set a decrease excessive as an oscillator – on this case RSI – units the next excessive. The latter can at occasions trace at downtrend resumption.
EUR/GBP – 8-Hour Chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the feedback part beneath or @FxWestwater on Twitter
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