Pound stays vulnerable – GBPUSD Forecast

Intermediate
  • A somewhat confused new lockdown directive from the UK government on Sunday alongside a rather cautious changes of advice and rules has seen the Pound stay under negative pressures versus the US Dollar.
  • There is also a negativity from both the high number of cases and deaths in the UK relative to mainland Europe and also regarding the lack of progress in trade talks with the EU.
  • Here we look at the negative bias for GBPUSD from a technical analysis perspective.

GBPUSD day trade outlook: A negative tone

A Monday selloff through 1.2356/48 supports for GBPUSD to hold just above he spike low at 1.2266 (at 1.2283), but whilst capped by 1.2374 we see  negative pressures from the late April rally failure and May selloff from just below the key 1.2647 peak (from 1.2643), to keep the risk back lower into Tuesday.

  • We see a downside bias for GBPUSD for 1.2283 and 1.2266; a break below maybe aims for 1.2247 and 1.2217.
  • But above 1.2374 aims for 1.2467 and 1.2483, which we would look to try to cap.

GBPUSD intermediate-term outlook

The latter April GBPUSD selloff below 1.2287 saw an intermediate-term shift from bullish to a broader range we see as 1.2163 to 1.2647.

  • Downside risks: Below 1.2163 sets an intermediate-term bear trend for 1.1639 and maybe 1.1410.
  • Upside risks: Above 1.2647 sets an intermediate-term bull trend for 1.3200 and maybe 1.3515.

4 Hour GBPUSD Chart

GBPUSD chart

Editor in chief

Steve Miley is the Market Chartist and 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 Mar... Continued

Comment on this video

Your email address will not be published.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


Latest Related News

Dollar switches trend to up

US Dollar Index aims higher (DXY forecast)Euro breaks down - EURUSD forecastMajor negatives appear on Pound (GBPUSD forecast) and Aussie (AUDUSD forecast) Continued

Bullish into 2021 with blue sweep confirmed

Macroeconomic/ geopolitical developments The Democrats won both seats in the Georgia Senate runoff elections from Wednesday, confirming a “blue sweep”, the Democrats now taking control of both houses of Congress alongside the presidency. Then, Thursday saw unprecedented and shocking events in Washington DC, with Trump supporters storming the Capitol building. The fact that President Trump appeared to incite this activity has seen his social media… Continued

Global Markets Outlook 2021

Initial Parameters: Chart analysis is technical and taken from medium-term historical patternTechnical projections based on a twelve-month time horizonTargets set are based on the most recent, significant technical adjustmentAnalysis is based on Elliot Wave and Fibonacci techniquesTechnical analysis only guides; exogenous factors can shock any marketMarkets, being capricious, forecasts are subject to revisionFundamental analysis can be commissioned on requestEquity sector analysis is thematic United States… Continued

Fresh lows on the US Dollar Index (DXY forecast)

Bull breakout on Euro (EURUSD forecast) Pound surges, breaks out (GBPUSD forecast) Aussie bull signal (AUDUSD forecast) US Dollar-CAD downtrend ends (USDCAD forecast)  Continued

Dollar Breaks down, Euro Breaks up – DXY and EURUSD forecasts

Dollar Index now showing a trend extreme. (DXY forecast)Pound reaches major upside target (GBPUSD forecast)Dollar Yen posts positive (USDYEN forecast)Dollar CAD breaks down (USDCAD forecast) Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.