Pound vulnerable to renewed losses (GBPUSD forecast)

Intermediate
  • The GBPUSD Forex rate has been probing higher in a corrective recovery theme this week, with slightly better data coming through on the U.K. economy.
  • However, prior bearish technical signals still leave GBPUSD vulnerable to further losses into this week.

 

GBPUSD day trade outlook: Negative tone 

A Tuesday-Wednesday rebound above 1.2969/79 resistances, but then stalling from below 1.3010 (from 1.2991), thereby holding onto negative forces from the earlier February selloff through key 1.2904 support (for an intermediate-term bearish shift), keeping risks lower Thursday.

  • We see a downside bias for 1.2932; a break below aims for 1.2894, maybe for 1.2872.
  • But above 1.2991 quickly targets 1.3010; above sees risk up towards key 1.3069/70.

GBPUSD intermediate-term outlook

We see an intermediate-term bear trend with the break below 1.2904.

Downside risks: We see downside risks for 1.2768, 1.2516 and maybe 1.2197.

What changes this? Above 1.3070 sets an intermediate-term neutral tone and only above 1.3209 an intermediate-term bull trend.

 

4 Hour GBPUSD Chart

GBPUSD Chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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