GBPUSD Currency pair flag

Latest GBP USD Analysis and Forecast

Positive tone now with push above 1.3674/76 barriers

Day trade update and view

A strong Thursday rally though our resistance barriers at 1.3674/76, up to 1.3734, to reject negative pressures from the recent setback down to 1.3568 and from the early October sell off to 1.3543, shifting the bias to the upside for Friday.

Day trade setup

  • We see an upside bias for 1.3734 and 1.3751/65; a break here aims for 1.3813 and maybe 1.3854.
  • But below 1.3631 opens risk down to 1.3568 and possibly 1.3543/31.

Intermediate-term outlook

The mid-August plunge below 1.3737 signalled an intermediate-term shift to a bear trend.

  • Downside risks: We see an intermediate-term bear trend to aim for 1.3134 and maybe towards 1.2675.
  • What changes this? Above 1.3913 shifts the intermediate-term bear trend straight to an intermediate-term bull trend.

GBP USD Calendar

15/10/21 China Retail Sales; US Retail Sales

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Please join the GBP USD discussion

    1. The Pound (GBP) is falling against most currencies today due to the release of the UK GDP, Manufacturing and Industrial Production data. Practically all elements of the is report were negative, with the quarterly contraction in GDP the first since 2012 indicating a weakening economy.
      This layers on top of ongoing fears about a “No Deal” Brexit and the threat that the Bank of England may need to cut interest rates. All of these factors are negative for the currency, hence the move lower for GBPUSD and GBPJPY, plus the move higher for EURGBP.
      Also, from a technical analysis perspective, GBPUSD, EURGBP and GBPJPY are moving to multi-year extremes, which sends a negative signal for GBP.
      Hope this helps, please revert with any further questions.

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