Pound Sterling Price News and Forecast: GBP/USD trades near upper channel line

GBP/USD outlook: Tuesday's bullish engulfing signals reversal but more work at the upside required for confirmation

Cable stands at the front foot on Wednesday, following strong rebound after repeated failure to clearly penetrate daily cloud (top of thick cloud lays at 1.2288). The pair advanced 0.83% on Tuesday and formed bullish outside day pattern that marks initial reversal signal. Daily cloud ascends and underpins recovery, along with solid UK manufacturing data, but fresh advance needs to clear 1.2402/13 barriers (10/55DMA's) to sideline existing downside risk, while extension above 1.2466 (Fibo 38.2% of 1.2813/1.2251 / 100DMA) is needed to confirm reversal. Daily studies are improving but momentum is still in the negative territory, with today's close below 10DMA to keep the downside vulnerable. US jobs and manufacturing data, due later today, would provide fresh direction signals. Read More...



GBP/USD analysis: Trades near upper channel line

Yesterday, the GBP/USD exchange rate jumped to the resistance formed by the weekly PP and the 200-hour SMA near 1.2400. During Wednesday morning, the rate was testing the given resistance.

From a theoretical perspective, it is likely that the currency pair could reverse south from the upper line of the medium-term descending channel circa 1.2400. Read More...



GBP/USD: Underperformance expected to continue

Over the past couple of weeks, sterling has been the worst performing major currency by some way. Although there was a degree of kick back against this yesterday, we expect this underperformance to continue. Subsequently, today is an important session for the continuation of the near term corrective outlook on Cable. A strong positive candle posted yesterday was counter to a three week downtrend and gives another chance to sell. This trendline sits at $1.2405 today as the early move has dropped back again. However, if the bulls can rally again and post another positive candle, then it would break the three week downtrend and suggest the market is ready to pull higher once more. Momentum indicators are at an intriguing crossroads too, where they remain negatively configured on a near term basis, but With Stochastics ticking higher, this could also be a turning point for a rally. The hourly chart shows the importance of how the market responds around $1.2400 resistance (an old basis of support which capped yesterday’s recovery) will be for the near term outlook. Read More...


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News