Pound upside risks with a weaker US Dollar (GBPUSD Forecast)

Intermediate
  • The “risk on” phase has extended through late May into this week, with global stock averages surging to new cycle highs.
  • In the Forex world, the US Dollar continues to weaken (alongside the Japanese Yen), seen very much as a safe haven currency in the COVID-19 world.
  • The positive global view continues to be driven by hopes the easing of lockdowns and the reopening of the global economy.
  • Alongside a weakened US Dollar, the Pound seems to be benefiting from hopes of a positive resumption of trade talks with the EU.
  • Here we again look at the more positive technical outlook for the GBPUSD forecast.

GBPUSD day trade outlook: Shift to a broader range, threat higher 

Again, a firm advance Monday now above key 1.2467 resistance, to neutralise the intermediate-term bear trend and set an intermediate-term range theme again (1.2075 to 1.2647), to keep the risk higher Tuesday.

  • We see an upside bias for 1.2525 and 1.2563; a break above here aims for key 1.2647.
  • But below the 1.2425/20 area targets 1.2274, maybe even towards the 1.2290/78 area.

GBPUSD intermediate-term outlook

The early June rally above 1.2467 saw a shift from an intermediate-term bear trend to a broader range, seen as 1.2075 to 1.2647.

  • Upside risks: Above 1.2647 sets an intermediate-term bull trend for 1.3000 and maybe 1.3200.
  • Downside risks: Below 1.2075 sets an intermediate-term bear trend for 1.1639 and maybe 1.1410.

4 Hour GBPUSD Chart

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Your email address will not be published.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 shifts to more bullish (GBPUSD Forecast)

GBPUSD day trade outlook: Intermediate-term shift to bullish and upside risks  A strong advance Tuesday through key 1.2542 resistance for an intermediate-term shift from neutral to bullish, to build on the strong, very early July rally above 1.2510 resistance and to now also overcome the 1.2580 level to 1.2592, to keep the risk to the upside into Wednesday.  Day trade setup We see an upside bias for 1.2592 and 1.2633; a break here aims… Continued

Cable still more negative – GBPUSD Forecast

Ongoing Brexit trade deal concerns have kept negative pressures on the Pound (GBP).The US Dollar retains a safe haven bid, in the light of worries regarding the rise in COVID-19 cases in many southern US states, and also of new pockets of breakout globallyThis reinforces the negative GBPUSD forecast we published last Wednesday 24th June. GBPUSD day trade outlook: Intermediate-term shift to neutral below key 1.2290… Continued

Euro, Pound and Australian Dollar supports under threat

Euro-Dollar fails at first resistance - EURUSD forecastPound threatens to break down once more - GBPUSD forecastMajor support on Aussie evaporates - AUDUSD forecast Continued

Is the bear market rally top in? US COVID-19 cases weigh on stocks

Macroeconomic/ geopolitical developments Global financial markets continued the indecisive tone seen through mid-June into the end of the month, which has been in relation to competing forces; positive economic data/ strong retail demand/ support from the authorities on the one hand and the rise in COVID-19 cases on the other.The strong rally from mid-May into the first half of June, was driven to some extent… Continued

Pound versus US Dollar threat stays lower, just – GBPUSD Forecast

GBPUSD day trade outlook: A negative bias, despite a rebound A Tuesday rally to build on Monday's rebound but still just capped by 1.2549 resistance at 1.2542 and whilst these barriers we hang onto negative pressures from last week's plunge below 1.2454 and the up trend line from mid-May, plus from the mid-June spike through 1.2500 support, to keep the risk lower into Wednesday. ·     … Continued

Forex Brokers in your location