GBP Technical Outlook:
- GBP/USD trying to consolidate around confluent resistance
- GBP/JPY has breakout potential as long as it holds its ground
GBP/USD is trading around the 2014/2018 trend-line that is in confluence with a pair of swing-highs that developed prior to the coronavirus meltdown. It was anticipated to hold as a ceiling, but if cable can continue to hold its ground then we a consolidation pattern could lead to a breakout in the not-too-distant future. A breakout is seen as potentially leading to the December high over 13500. Should we see a strong pullback suddenly develop then we will need to reevaluate. A break under 12981 would likely bring in some added pressure that could accelerate price lower.
Recommended by Paul Robinson
Check out the Q3 GBP Forecast
GBP/USD Daily Chart (trying to hold around confluent resistance)
GBP/JPY has been trending higher at a slower pace than GBP/USD, but it did cross an important trend-line from December along with the 200-day MA. It is in an upward channel that if can be broken to the upside should lead to further gains. A breakout above the top of the channel and 13974 (June high) is seen as accelerating the trend, potentially towards the February 2018 trend-line around 14400. A near-term breakdown towards the bottom of the rising channel from June could offer traders a solid risk/reward opportunity to buy on a dip.
GBP/JPY Daily Chart (in channel for now)
For all the charts we looked at, check out the video above…
Resources for Forex Traders
Whether you are a new or an experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, and trading guides to help you improve trading performance.
—Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX