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Poundsterling

GBP Market Commentary - Pound Under PressureFundamental Analysis: UK Economy currently holds a significant current account deficit of £21.1 billion (Q1 2020) or 3.8% of GDP Indicates a substantial deficit of savers, the UK economy is therefore in need of international savers to plug the gap, however international savers are only willing to come in when there is a strong fundamental outlook. Over the past few years, investment into the UK as a percentage of GDP has dropped significantly, dropping below France and Germany, highlighting investors are not liking what they see, i.e too much political uncertainty! Continued uncertainty leads to a further reduction in investment flows leading to potential downward pressure on the value of sterling. The political and economical future of the UK is looking anything but certain. UK Health Secretary recently warned the UK is at COVID tipping point, with a recent rapidly rising rate of infection, forcing pressure on the Govemernet to introduce further tough nationwide restrictions in a desperate attempt to avoid a 'disastrous' second lockdown. Further uncertainty over Brexit has also reached a critical point. Boris Johnson latest manoeuvres led to a full-scale rebellion by Conservative MPs and widespread recriminations over his plan to break international law. Technical Analysis: The GBP/USD looks to be currently undergoing an ABC correction to the downside after an impulsive leg recovery following the initial COVID sell-off. A daily close below June highs of the 1.28 handle would be significant, a clear indication of the bears fully taking control
Short
by RaphFX
EURGBP: How to Catch Bullish Continuation??? hey traders, if you missed a long trade from a key level on EURGBP, pay attention to a minor ascending triangle on 4H today. wait for a 4h candle close above its horizontal resistance and buy aggressively or on a retest. your fist goal will be 0.925 level. concerning a save stop placement, I would set it based on the last higher low within a flag formation. if the market respects the resistance and drops setting a new structure low, our setup will be invalid.
Long
by VasilyTrader
12
GBPUSD - Things could take a turn...GBP - Cable...Yes, we do have further Brexit talks this week...! Regarding Brexit we do have till 15th October - For further information, check Brexit schedule online.. Brexit has been an on going thing that really both sides don't agree on much at all. However, there is time to resolve although for a deal could be looking slim the further we approach the key date if we continue the same flow they've been going which could decrease GBP depending on the type of deal if negative or no deal at all. Daily Time frame - Technical aspects: - Pattern, within a longer term channel - Pattern, smaller rising wedge within channel - Fib Retracement - We could decline near support area of channel = 1.31300 areas ..Although I have my eye on 0.618 = 200 EMA 1.27/1.26 areas (That's if we do come out of this bullish channel...! - Fib Retracement - We could even go towards support areas of this channel 1.31300 areas then further rise towards 261.8, which measured the wedge formation towards the length of those areas and good resistance area of the channel as well. However, keep in mind that is a large move heading towards 1.40 if we do go towards those areas. For further confirmation, if the bulls get in control we could need to retest the 1.35 areas closing above. On Thursday, we have the ECB meeting regarding policy matters and various other topics as we are aware Feds have shifted the market towards a dovish view and ECB does not like higher monetary price it will be interesting how they approach this meeting and what kind of outlook will be given, which could shift the major pairs, that might be perhaps easier to trade....but most importantly do keep an eye on EUR we could either go back towards 1.19 or 1.1750-1.16 areas, and if there is no change 1.19-1.20. Key Tip: Don't rush to trade, add further confirmation towards your plan...! All the best & have a successful week of trading. Remember: just a trade idea, not a recommendation. Trade Journal.
by Trade_Journal
GBPNZD: Key Levels That You MUST Consider hey guys, GBPNZD is currently approaching a strong weekly structure. because the pair is very volatile and can boom and bust very quickly, here are the key levels that you must consider trading this market: Support 1 - 1.905 - 1.915 this structure is based on the current year's low and price action of 2019th. the market is currently testing that area, so look for long opportunities on lower time frames. Support 2 - 1.84 - 1.854 this structure is based on 2018's and 2019's structure lows. though the market dived deeper testing theses levels, weekly candles have perfectly closed within the above-mentioned zone. Resistance 1 - 1.945 - 1.955 this structure is based on 2019's price action. in case if support 1 is respected, it can be the first goal for swing traders Resistance 2 - 2.0 - 2.02 this structure is based on current year's high and 2019's price action major reversals always happen on key levels. so always pay attention to the reaction of the market to these zones.
Long
by VasilyTrader
17
Technical Analysis: It’s a Tough Week for PoundThe past week, 7 – 13 September, has been marked for the British pound with negative developments in Brexit trade deal talks. The British government made unilateral amendments to the deal signed last year by the EU and U.K., which, as it has admitted, ‘breaks international law in a very specific and limited way’. GBP/USD GBP/USD has dropped 483 points or 3.64%, breaking below 1.2800 at the week’s close. The pair looks headed toward 1.2690, where a daily support level lies. The past week began for GBP/USD between 1.3300 and 1.3200, with a slight downward slippage from the previous week’s close. On Monday, the pair reached the daily support level at 1.3127 and lost some 179 points on Tuesday with a daily bear candle with no lower shadow. Then it took one day of consolidation around the 50-day SMA, and the quote fell more on Thursday and Friday, finishing the week at 1.2794. The trend channel’s lower line in couple with the support level at 1.2690 is likely to provide some support for the pair during this week. However, the present downward momentum in the market makes buying orders too risky for now. The more reasonable tactic would be to monitor the price dynamics at the start of the week to see the market’s reaction to the nearing trend channel’s lower line and the daily support level at 1.2690. If the selling momentum dies down there, a buying order at around 1.2790 can be a good mid-term deal. GBP/EUR GBP/EUR has slipped last week to 1.0799, which is 411 points or 3.67% lost. The fall has stopped exactly at the weekly support level at 1.0795. The euro’s relative strength in the present-day global economy is adding to the fundamental weaknesses of the pound in the pair’s sharp fall. The GBP/EUR pair has been in the red the whole week with five bear candles. Whether the weekly support level is going to moderate the downward momentum remains to be seen, though it has already slackened the fall. Quite a lot will depend on Brexit trade deal talks in this respect. If the fall continues, which is a highly probable option, the pair could reach its year’s low registered in March in the middle of the new coronavirus crisis. The interception of the 50-period SMA by the 20-period SMA on the daily timeframe looks almost inevitable now, which will be another confirmation for the downtrend reversal. However, these two moving averages could likewise indicate an uptrend reversal if the price consolidates at around 1.0800. Therefore, those looking for a potential mid-term buying order of the current lows may well benefit from such an indication. If we take a glance at the 4-hour timeframe chart, we will see that a potential consolidation zone is forming already. However, more confirmation will be required to act upon a probable uptrend reversal. Looking at the 4-hour chart from the candlestick-pattern perspective, we may be seeing a forming Adam and Eve uptrend reversal pattern, with the sharp fall already finished and a second milder one with the u-shape bottom to follow after a moderate rebound of the weekly support level. If that happens, it will be a strong indication of a possible uptrend reversal.
by KonstantinAnissimov
EURGBP: Key Weekly Supply Zone Ahead!!! +4.5% growth during the last 10 days on EURGBP . Pound keeps losing its grounds on brexit news. however, based on 3 days chart analysis you can see that the market is facing a crucially important zone of supply. its lower boundary - 0.93 level is based on 2019's structure high (immediate bearish reaction followed and -10% drop ) its upper boundary - 0.95 is based on 2020's structure high (immediate bearish reaction followed and -8% drop ). + the projection of the last bullish impulse from the higher low is lying perfectly within that zone. chances will be high that the underlined area will be respected and we will see a pullback. I will be looking for short opportunities once the market enters that area. have a great weekend!
Short
by VasilyTrader
1
EURGBP: Key Weekly Supply Zone Ahead!!! hey traders, +4.5% growth during the last 10 days on EURGBP. Pound keeps losing its grounds on brexit news. however, based on 3 days chart analysis you can see that the market is facing a crucially important zone of supply. its lower boundary - 0.93 level is based on 2019's structure high (immediate bearish reaction followed and -10% drop) its upper boundary - 0.95 is based on 2020's structure high (immediate bearish reaction followed and -8% drop). + the projection of the last bullish impulse from the higher low is lying perfectly within that zone. chances will be high that the underlined area will be respected and we will see a pullback. I will be looking for short opportunities once the market enters that area. have a great weekend!
Short
by VasilyTrader
33
The Pound In Free Fall as Brexit Negotiations Take a TurnOn 8 September, GBP/USD lost 1.36% or 179 points, owing to the sudden crisis in the Brexit deal talks. With the rumors about the changes made to the Internal Market Bill circulating on the sidelines of Brexit talks on September 7th, it became publicly known that the Boris Johnson Conservative U.K. government was going to issue a new edition of the Internal Market Bill as a backup plan reserved for a no-deal Brexit on Wednesday, September 9th. The British government has even acknowledged that these changes “break international law in a very specific and limited way.” In response, the EU threatened the U.K. with trade sanctions in case the new agreement was not withdrawn. In response to such grim prospects in Brexit talks, GBP/USD continued slipping down through Thursday, 10 September, having fallen as low as 1.2773. With little economic data coming from the U.K. this week, there is limited positivity for sterling to count on; therefore, a further decline to 1.2689 is the likeliest near-term target. As of the start of Friday’s trading day, GBP/USD recovered some of its Thursday’s losses, climbing as high as 1.2763, but then lost most of the gains and descended to 1.2725. On Thursday the pair lost 1.52% or 228 points, which is the largest loss since the 19th of March. The Brexit deal is currently the main focus in the GBP/USD market and will continue to be the most important factor in the pricing of the pair at least until October 15th, which is the last day set by Boris Johnson for signing a trade deal. If the deal is not signed by then, the pound could see further losses against the greenback and other major currencies.
by KonstantinAnissimov
GBPNZD: Long Trade Explained GBPNZD is trading within a key weekly/daily zone of demand. this zone is based on a strong horizontal structure + confluence with 618 retracement of the last major leg and a support line of a falling parallel channel on 4h. on hourly time frame the price stopped falling after a massive selloff and set a higher low forming a double bottom pattern. now I wait for a bullish breakout 1.949 minor resistance to initiate a long position. target levels: 1.956 1.96 in case of a new lower low, lower close, setup will be invalid.
Long
by VasilyTrader
14
GBP Update 9.9.2020GBP has been weaker than the last 2 Star Wars films, but it was due for a correction. How got that correction this morning, but is it enough? I'm bearish on the GBP, but whenever I see this H&S pattern it usually sends the pair up (or down if the pattern is on the top, this one is inverted). We could see more corrections from the GBP pairs tonight. As I mentioned in my USD post, my favorite trade at the moment is the GBPUSD. Currently, the pair is below its intraday range and heading short.
by riffster21