Forex Analysis Today | GBPUSD


GBPUSD Long Potential | Forex Analysis

As expected, GBPUSD is also trading lower since yesterday after the price completed a big corrective retracement labeled as wave IV and made a nice sharp turnaround lower from 1.5014. Because of a broken channel support line and a nice impulsive fall, we now think that wave V is underway and more weakness may occur towards 1.3000 region, where bears may slow down (Forex Analysis).

GBPUSD Long Potential | Forex Analysis

GBPUSD Long-Term Bullish View

Sterling covered the entire 2016 range in one day with the pair rallying into channel resistance before reversing sharply to post its largest daily range in history. The low registered just below the 100% extension extending off the 2014 high at 1.3303- note that this level also converges on a trendline extending off the 2001 & 2009 lows as well as the median-line (blue). Interim resistance stands at 1.3834 (a weekly close below bodes well for continued weakness) with our broader outlook weighted to the downside while below 1.4222/25 where the February low-day close converges on the 2010 low.

Forex Analysis

GBPUSD End Of Fading | Forex Strategies

Although the 23-month down-trend was pierced to the upside on Thursday, the ‘Brexit’ poll results caused the Pound to plummet today, registering a 10% drop towards the lowest level in 30 years. At this point the question is whether the Sterling will be able to stabilise above the 1.36 major level or it will remain close to the 30-year low. There are some supports that could still limit the losses, but with the turmoil on the markets, the Cable’s behaviour is too unpredictable. Nevertheless, a potential cluster is located around the 1.37 psychological level, formed by the weekly S3 and the 23.60% Fibo, while the overall bottom target is today’s low of 1.3230 (Forex Analysis).

Forex Analysis

GBPUSD Killer Dead Cat Bounce

Analysts at TD Securities noted, “We see the odds of a UK recession within the next 12 months as now 60%. We pencil in year-end targets for GBPUSD of 1.20 and 0.50% lows in 10y gilts, and shift the next Fed hike to June 2017, with a 30% chance of a rate cut but only if downside risks materialize, with these forecasts remaining fluid.” The major was slammed to the lowest levels since 1985 at 1.3218 levels earlier today, after the Britons voted for a Brexit at the historical EU referendum held Thursday (Forex Analysis).

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GBPUSD Wave Down Post | Trading Forex

Cable-I warned that we are moving up in 2nd Wave & maximum upside expected was 1.5130-1.5150 or maximum 1.5500-1.5550 which will retrace 80% of 1st Yellow Wave.This Downside Explosive Movement confirmed that 3rd wave is under play. As per last update- “GBPUSD-Possible Jump in 2nd wave till 1.5150 “- I warned do not get trap on long side of pound. Look it has unfolded in similar fashion.In Dollar Yen as well we kissed our target zone -106.75 before crashing down & going to 98 levels 105.05 was crucial resistance which one should have taken as important support on polarity reversal basis-where support turns into resistance & resistance turns into support.

Forex Analysis

The British Pound is today the 3rd most important reserve currency globally as well as the fourth most traded currency in the foreign exchange market, subsequent to the United States dollar, the euro, and the Japanese yen. The pound and the euro usually fluctuate in value against one another. However, there is often a correlation between movements in their respective exchange rates with other currencies such as the US dollar.

The decision taken by the UK government in 1999 to refuse membership in the Eurozone group has, over the years, created unparalleled investment opportunities for Forex traders and the Pound Sterling to US Dollar FX trading analysis continues to point investors in the same direction.