Jump to content

British Pound Outlook: GBP/USD, EUR/GBP, GBP/JPY Technical Forecast


Recommended Posts

UK BRITISH POUND TECHNICAL OUTLOOK: BULLISH

  • GBP/USD bulls aim to break above the key psychological level of 1.36 despite a hawkish Fed
  • EUR/GBP falls to critical support at the lower bound of the descending triangle formation
  • GBP/JPY eager to break above October highs in an effort to claim 160
image.jpeg

The British Pound has held onto recent gains as the rapid spread of the Omicron variant continues to hinder the pace at which the global economy can recover from the Coronavirus pandemic. After the BoE (Bank of England) made a decision to raise rates in December, the Sterling ended the year in positive territory and remains resilient against its major counterparts.

Although fundamental factors continue to drive risk sentiment, a high vaccination rate in the United Kingdom combined with higher rates has supported GBP/USD despite a hawkish Federal Reserve (Fed).

Find out more about the impact of interest rates on the foreign exchange market

Meanwhile, for EUR/GBP and GBP/JPY, the carry trade (difference between the rate differentials) has the probability of supporting Sterling prices as policymakers continue to fight against the effects of rising inflation.

 

GBP/USD TECHNICAL ANALYSIS

After rebounding off of the 38.2% Fibonacci retracement level of the 2018 – 2020 move at 1.324, GBP/USD bulls managed to drive prices higher before facing a wall of resistance at the upper bound of the descending channel which continues to provide additional zones of support and resistance.

As bulls strive to clear the key psychological level of 1.36, price action currently remains below the 50-week moving average (SMA) and within the range of 1.32 and 1.36 respectively.

GBP/USD Weekly Chart

British Pound Outlook: GBP/USD, EUR/GBP, GBP/JPY Technical Forecast

Chart prepared by Tammy Da Costa using TradingView

However after bears failed to break below Fibonacci support, prices have since risen above the 50-day moving average (MA) on the daily time-frame while the CCI threatens oversold territory. If bulls are able to drive prices higher, a retest of 1.38 may be probable. On the contrary, failure to break above channel resistance may provide bears the opportunity to push prices back towards the 1.32 handle.

GBP/USD Daily Chart

British Pound Outlook: GBP/USD, EUR/GBP, GBP/JPY Technical Forecast

Chart prepared by Tammy Da Costa using TradingView

EUR/GBP TECHNICAL ANALYSIS

After five consecutive weeks of losses,the fundamental backdrop has allowed EUR/GBP to fall to a critical level of support, formed by the lower bound of a descending triangle. As bears now aim to retest the 2020 low at 0.828, bulls would need to drive prices above trendline resistance at the key psychological level of 0.85 for a chance at reviving the upward move.

EUR/GBP Weekly Chart

British Pound Outlook: GBP/USD, EUR/GBP, GBP/JPY Technical Forecast

Chart prepared by Tammy Da Costa using TradingView

As both the European Central Bank (ECB) and Bank of Japan (BoJ) maintain a dovish stance, EUR/GBP has the potential to continue to decline while GBP/JPY may continue to benefit from the carry trade.

GBP/JPY Weekly Chart

British Pound Outlook: GBP/USD, EUR/GBP, GBP/JPY Technical Forecast

Chart prepared by Tammy Da Costa using TradingView

Written by Tammy Da Costa, Analyst for DailyFX.com. 9th Jan 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Elliott Wave Analysis TradingLounge Daily Chart, DogeCoin/ U.S. dollar(DOGEUSD) DOGEUSD Elliott Wave Technical Analysis  Function: Counter trend     Mode: Corrective Structure: Zigzag Position: Wave ((C)) Direction Next higher Degrees: wave I of Impulse Wave Cancel invalid Level:  Details: Wave ((4)) may is complete and the Price entry to uptrend again DogeCoin/ U.S. dollar(DOGEUSD)Trading Strategy: Dogecoin overall is still in the period of correction. In the position of wave (II) with a Zigzag pattern, the view is therefore for a short-term pullback before rising again in wave (III), waiting for the correction to complete to rejoin the uptrend. DogeCoin/ U.S. dollar(DOGEUSD)Technical Indicators: The price is below the MA200 indicating a downtrend, The Wave Oscillator is a Bearish Momentum. Elliott Wave Analysis TradingLounge H4 Chart, DogeCoin/ U.S. dollar(DOGEUSD) DOGEUSD Elliott Wave Technical Analysis  Function: Counter Trend Mode: Corrective  Structure: Zigzag Position: Wave A Direction Next higher Degrees: Wave V of Impulse Wave Cancel invalid Level:  Details: wave ((2)) Is Equal to 61.8% of Wave ((1)) at 0.1373 DogeCoin/ U.S. dollar(DOGEUSD)Trading Strategy: Dogecoin overall is still in the period of correction. In the position of wave (II) with a Zigzag pattern, the view is therefore for a short-term pullback before rising again in wave (III), waiting for the correction to complete to rejoin the uptrend. DogeCoin/ U.S. dollar(DOGEUSD)Technical Indicators: The price is below the MA200 indicating a downtrend, The Wave Oscillator is a Bearish Momentum. Technical Analyst : Kittiampon Somboonsod Source : Tradinglounge.com get trial here!  
    • ASX: ASX LIMITED - ASX Elliott Elliott Wave Technical Analysis TradingLounge (1D Chart)   Greetings, Our Elliott Wave analysis today updates the Australian Stock Exchange (ASX) with ASX LIMITED - ASX. We observe that ASX LIMITED is approaching the end of wave 2-grey, but needs more evidence on price action for confirmation, also allowing wave 3-grey to be opened to push higher thereafter.   ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis   ASX: ASX LIMITED - ASX  1D Chart (Semilog Scale) Analysis Function: Major (Minor degree, grey) Mode: Motive Structure: Impulse Position: Wave (c)-orange of Wave ((y))-navy of Wave 2-grey Details: The short-term outlook indicates that the price has continued to decline longer than expected, with wave 2-grey retracing quite deeply. Essentially, it may continue this action. However, a drop below 53.98 will call for a reassessment of the situation. Invalidation point: 53.98   ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis TradingLounge (4- Hour Chart) ASX: ASX LIMITED - ASX  Elliott Wave Technical Analysis ASX: ASX LIMITED - ASX  4-Hour Chart Analysis Function: Major (Minor degree, grey) Mode: Corrective Structure: Double Zigzag Position: Wave (c)-orange of Wave ((y))-navy of Wave 2-grey Details: The short-term outlook shows that wave (c)-orange is about to complete, and at the same time it will also complete wave 2-grey, allowing wave 3-grey to open to push higher. The important thing is that the price needs to rise above 59.39, which is also the first step to renew the long-term bullish view with wave 3-grey. Invalidation point: 64.32   Conclusion:   Our analysis, forecast of contextual trends, and short-term outlook for ASX: ASX LIMITED - ASX aim to provide readers with insights into the current market trends and how to capitalize on them effectively. We offer specific price points that act as validation or invalidation signals for our wave count, enhancing the confidence in our perspective. By combining these factors, we strive to offer readers the most objective and professional perspective on market trends.   Technical Analyst: Hua (Shane) Cuong, CEWA-M (Master’s Designation). Source : Tradinglounge.com get trial here!  
    • I overheard a discussion between two friends and one was telling the other that Bitcoin is a scam and that a lot of people preached about the halving and how people could cashout from it. The other friend was trying to convince him to continue holding his asset but he refused and replied that nothing would stop him from selling the coins he's holding.  When I heard that man mentioned cashing out from the halving, I understood that he might know about Bitcoin but he's not properly enlightened concerning it. A lot of expectations were cut short after the halving event cause most people expected Bitcoin to set a new height of $80k but then it didn't even get close to the previous all time high and have reduced below $60k currently.  I think people shouldn't get discourage by that, though I didn't experience other halvings cause I had zero knowledge about Bitcoin then but i think something similar have occurred before in one of the previous halving where Bitcoin price didn't go up as expected but later traced back and went up after some period, a lot of people might begin to panic and sell their coins but I still see this an opportunity to buy more Bitcoin and for those who are not opportuned to do so, holding is the best option, please correct me if you think am wrong  
×
×
  • Create New...
us