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 Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 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