GBP/USD Signals More Losses Ahead

GBP/USD Signals More Losses Ahead

GBP Technical Outlook

  • GBP/USD reversal has pressure on the downside
  • Back inside bull channel, lower parallel targeted

GBP/USD reversal sets it up for more selling

The weekly GBP/USD reversal puts the onus on the long-side of the market. Abrupt turnabouts like last week can have some lasting effects if not quickly reversed, and with price inside the channel from September, odds of further losses rise even more.

The weekly reversal (high = 14241) came from around the highest weekly closing print of 2018 (high close = 14236), which turned out to be a significant cycle high. So this isn’t that surprising.

With GBP/USD trading back inside the bull channel (broke the top of it as support), this opens up a path to trade down to the lower parallel of the structure; this clocks in around 13630 or so, a solid distance from here. More importantly, in confluence with the lower parallel is the March trend-line. A big spot down there.

From a tactical approach, the trading bias is to the short side unless we see some type of reversal and stabilization. Keep an eye on risk trends as well, as stocks sag and USD gains a bid.

GBP Forecast

Recommended by Paul Robinson

Check out the Q1 GBP Forecast

GBP/USD Daily Chart (inside channel)

GBP/USD Daily Chart

GBP/USD Weekly Chart (reversal at highest weekly close of 2018)

GBP/USD Weekly Chart

GBP/USD Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at@PaulRobinsonFX

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