Pound aiming higher, dip presents buy opportunity – GBPUSD forecast

Intermediate
  • A positive theme has continued since we highlighted GBPUSD bullish threats here last week .
  • This despite the still negative soundings from EU/UK trade negotiations.
  • The US Dollar has renewed its more bearish theme, which has seen most major currencies benefit against the greenback.
  • A dip over the past 24 hours, but we see this as a long entry opportunity and still see GBPUSD upside potential today, this week and for early September.

GBPUSD day trade outlook: Another bull extension

A firm advance Tuesday to above 1.3422 and 1.3469 resistances to a new cycle high at 1.3483, to build on the strong late August rally above the key peak from December 2019 at 1.3284 and a 1.3330 target, and the prior rebound from our 1.3053/45 support area, and despite a dip back lower, whilst above 1.3301 to keep the risk to the upside into Wednesday. 

Day trade setup

  • We see an upside bias for 1.3435 and the new cycle high at 1.3483; above aims towards 1.3500/15.
  • But below the 1.3301 aims for 1.3262 support, which we would look to try to hold; below opens risk down to 1.3216.

GBPUSD intermediate-term outlook

The early July push above 1.2542 signalled an intermediate-term shift to a bull trend.

Upside risks: We see an intermediate-term bull trend to aim for 1.3515.

  • What changes this? Below 1.2981 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
6 Hour GBPUSD Chart
6 Hour GBPUSD Chart

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

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

Pound stays negative despite rebound – GBPUSD forecast

The GBPUSD negative theme we highlighted here last week has been questioned by the rebound efforts this week.However, with regards to both the Internal Markets Bill and the trade negations with the EU we still see game theory, brinkmanship resuming.This could still leave the Pound vulnerable going forward.Here we look at GBPUSD downside risks today and into the second half of September. GBPUSD day trade… Continued

Stocks erratic, searching for direction; Pound plunges

Macroeconomic/ geopolitical developments A solid start to last week for risk assets as European and Asian stocks staged rebounds with US markets closed for the Labour Day HolidayHowever, riskier assets turned south again Tuesday and traded heavy for much of last week (see the “Global financial market developments” section below for details.At the start of the week, UK Prime Minister Boris Johnson placed a 15th… Continued

Pound collapses!

Dollar Index fails to break up - DXY forecastEuro holds support - EURUSD forecastPound collapses and breaks below weekly support - GBPUSD forecastEuroPound accelerates higher - EURGBP forecast Continued

Pound shifts far more bearish – GBPUSD forecast

The GBPUSD positive theme we highlighted here a week ago has been rejected by the negative price action this week.Far more negative developments from EU/UK trade negotiation with more aggressive brinkmanship have weighed on the Pound against both the US Dollar and Euro.In addition, US Dollar strength in the wake of the US tech stock rout since last week has also helped Cable (GBPUSD) lower.Here… Continued

Stocks surge, Dow erases 2020 losses

Macroeconomic/ geopolitical developments Last week began with a perceived “risk on” development with President Trump announcing the fast tracking of COVID-19 plasma treatment and also fast tracking the Astra Zeneca/ Oxford University vaccine trials.Also, early in the week it was announced that a call had taken place between U.S. Treasury Secretary Steven Mnuchin/ US Trade Representative Robert Lighthizer with Chinese Vice Premier Liu He.The reportedly… Continued

Forex Brokers in your location


SIGN UP

79% of retail investor accounts lose money


SIGN UP

78,6% of retail investor accounts lose money


SIGN UP

74,9% of retail investor accounts lose.


SIGN UP

73,9% of retail investor accounts lose.