Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19
Betting on Next British Prime Minister Tory Leadership Betfair Markets Forecast - 10th June 19
How Can Stock Market Go Up When We’re Headed Towards a Recession? - 10th June 19
If You Invest in Dividend Stocks, Do This to Double Your Returns - 10th June 19
Reasons for the Success of the Dating Market - 10th June 19
Gold Price Trend Analysis - Video - 10th June 19
US Stock Markets Rally Hard – Could Another Big Upside Leg Begin? - 10th June 19
Stock Market Huge Cosmic Cluster Ahead: Buckle Up! - 10th June 19
Stock Market Higher To Go? - 10th June 19
The Gold Price Golden Neckline… - 10th June 19
Gold Price Seasonal Trend Analysis - 9th June 19
The Fed Stops Pretending - 9th June 19
Fed Rate Cuts Soon; Bitcoin Enthusiasts Join Wall Street in Bashing Gold - 9th June 19
1990s vs. 2010s - Which Expansion Will be Better for Gold? - 9th June 19
Gold Price Trend Analysis, MACD, Trend Channels, Support / Resistance - 8th June 19
Gold Surges Near Breakout - 8th June 19
Could Gold Rally Above $3750 Before December 2019? - 8th June 19
5 Big Lies About Precious Metals Investing Exposed - 8th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

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.


© 2005-2019 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

6 Critical Money Making Rules