Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24
RECESSION When Yield Curve Uninverts - 8th Sep 24
Sentiment Speaks: Silver Is Set Up To Shine - 8th Sep 24
Precious Metals Shine in August: Gold and Silver Surge Ahead - 8th Sep 24
Gold’s Demand Comeback - 8th Sep 24
Gold’s Quick Reversal and Copper’s Major Indications - 8th Sep 24
GLOBAL WARMING Housing Market Consequences Right Now - 6th Sep 24
Crude Oil’s Sign for Gold Investors - 6th Sep 24
Stocks Face Uncertainty Following Sell-Off- 6th Sep 24
GOLD WILL CONTINUE TO OUTPERFORM MINING SHARES - 6th Sep 24
AI Stocks Portfolio and Bitcoin September 2024 - 3rd Sep 24
2024 = 1984 - AI Equals Loss of Agency - 30th Aug 24
UBI - Universal Billionaire Income - 30th Aug 24
US COUNTING DOWN TO CRISIS, CATASTROPHE AND COLLAPSE - 30th Aug 24
GBP/USD Uptrend: What’s Next for the Pair? - 30th Aug 24
The Post-2020 History of the 10-2 US Treasury Yield Curve - 30th Aug 24
Stocks Likely to Extend Consolidation: Topping Pattern Forming? - 30th Aug 24
Why Stock-Market Success Is Usually Only Temporary - 30th Aug 24
The Consequences of AI - 24th Aug 24
Can Greedy Politicians Really Stop Price Inflation With a "Price Gouging" Ban? - 24th Aug 24
Why Alien Intelligence Cannot Predict the Future - 23rd Aug 24
Stock Market Surefire Way to Go Broke - 23rd Aug 24
RIP Google Search - 23rd Aug 24
What happened to the Fed’s Gold? - 23rd Aug 24
US Dollar Reserves Have Dropped By 14 Percent Since 2002 - 23rd Aug 24
Will Electric Vehicles Be the Killer App for Silver? - 23rd Aug 24
EUR/USD Update: Strong Uptrend and Key Levels to Watch - 23rd Aug 24
Gold Mid-Tier Mining Stocks Fundamentals - 23rd Aug 24
My GCSE Exam Results Day Shock! 2024 - 23rd Aug 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

British Pound Likely to Extend Declines – The Big Picture

Currencies / British Pound Jul 27, 2018 - 10:44 AM GMT

By: Submissions

Currencies

FXOpen writes: The weekly chart of GBP/USD indicates that pair broke key support levels. On the other hand, EUR/GBP may perhaps move higher in the medium term.

Key Points

  • The British Pound started a major downward move from the 1.4375 swing high against the US Dollar.
  • GBP/USD broke a key bullish trend line with support at 1.3720 on the weekly chart.
  • EUR/GBP formed a short-term top near the 0.9300 level and declined.
  • The pair is following a declining channel with resistance near 0.8930 on the weekly chart.

GBP/USD Technical Analysis

The British started a major upward move from the 1.2000 swing low in February 2017 against the US Dollar. The GBP/USD pair traded above the 1.3000 and 1.4000 handles in 2018.



However, the 1.4375-1.4400 area acted as a strong resistance, resulting in a downward move. The pair started a strong decline and moved below the 1.4000 and 1.3500 support levels. Moreover, there was a break below the 38.2% Fib retracement level of the last wave from the 1.1972 low to 1.4376 high.

More importantly, there was a break below a key bullish trend line with support at 1.3720 on the weekly chart. The pair also closed below the 50-week simple moving average to move into a bearish zone.

The next support on the downside is near 1.2900 and the 61.8% Fib retracement level of the last wave from the 1.1972 low to 1.4376 high. Should there be a break below the 1.2900 support, the pair may perhaps accelerate declines towards the 1.2800 and 1.2600 levels.

On the other hand, if GBP/USD corrects higher, it is likely to face resistance near the 1.3400 and 1.3500 levels, which are close to the 21-week SMA. The overall bias is slightly bearish on the weekly timeframe, and only a close back above 1.3500 could push the pair back in a bullish zone.

EUR/GBP Technical Analysis

The Euro gained traction during the last 2017 and moved above the 0.8800 and 0.8900 resistance levels against the British Pound. The EUR/GBP pair traded close to the 0.9300 level where sellers appeared.



The pair started a downside move and declined below the 0.9000 and 0.8900 support levels. There was also a break below the 50% Fib retracement level of the last wave from the 0.8313 low to 0.9306 high.

However, the 0.8650 support area acted as a strong barrier for buyers. Moreover, the 61.8% Fib retracement level of the last wave from the 0.8313 low to 0.9306 high also acted as a support.

The pair is currently recovering and is following a declining channel with resistance near 0.8930 on the weekly chart. More importantly, the pair is trading above the 0.8800 pivot level and the 21-week simple moving average.

Should the pair succeed in clearing the channel resistance near 0.8930 and 0.8950, there could be more gains in EUR/GBP in the near term. Above 0.8950, the pair may perhaps move above the 0.9000 resistance.

On the flip side, if the pair fails to settle above the channel resistance at 0.8930, there may possibly be a downward reaction back toward the 0.8800 support. Below this, the pair is likely to test the channel support near the 0.8600 handle in the medium term.

Overall, the British Pound is under pressure and it could decline further versus the US Dollar and Euro in the medium term.

The market outlook is provided by FXOpen broker.

FXOpen - true ECN/STP Forex and cryptocurrency broker.

© 2018 Copyright FXOpen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in