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GBPUSD DAILY CHART – 1.2850-00
GBPUSD 1.2850 setting up as the intra-day bias setter with some support coming from a softer EURGBP (after being bid yesterday).
Note the fibo levels, and resistance on this chart, making 1.2850-00 the zone that needs to be overcome to suggest more scope on the upside.
EURGBP 1 HOUR CHART – Tug-of War
.8580 is a pivotal area with the key .8625 high exposed if trading above it
Catalyst today was UK CPI
Note, when two currencies trade in opposite directions vs the USD, like a tug-of-war, it is a sign of real money cross flows driving it.
Market is having more trouble absorbing the EUR buying.
EURUSD WEEKLY CHART – ONLY ONE LEVEL MATTERS
What have you done for me lately?
This came to mind this morning after I nailed the direction and support yesterday (1.0945-50).
Looking across all currencies, the NZD is the big loser (-1.1%) while EURUSD is the outperformer, up while GBP and JPY are down vs. the dollar, providing demand for EUR out of its crosses.
EURUSD
The only level that matters is 1.10 as it just broke its 1.1008 daily resistance with key levels beyond it shown on this chart. I the absence of key nearby levels, 1.1020-50 is a potential resistance zone.
The support zone is 1.0980-00 and 1.0945-50/
Next key focus is on US CPI… tone will be set by 1.10 post-data
GBPUSD WEEKLY OUTLOOK – MOVING AVERAGES CHECK THE DOWNSIDE
Posted over the weekend (daily chart)
GBPUSD bounce from the 100 (blue) and 200 (yellow) moving average band would need to regain 1.28+ to expose resistance (1.2800-20) and retracement levels as shown below.
On the downside. 1.27 is a pivotal level that needs to trade above to keep a new found bid. Below it is key support is at the 1.2664 low and the major 1.2612 support.
There is a full UK economic calendar this week so the reaction will dictate whether GBPUSD has found a bottom.
GBPUSD retracement levels:
GBPUSD Daily
Resistances : 1.27750 , 1.27850 & 1.28050
Supports : 1.27450 , 1.27250 & 1.26750
After breaking below the Channel Trend line, the same one is now acting as a Resistance -1.28050
It doesn’t mean that we’ll be watching Bears dancing, as it might be just a correction, but if that resistance shows strength, we should be falling one more leg…all the way to the Major Support at 1.24150.
That development can take about 4 days to happen….so it can be traded both ways ( as it is always the case with the Demon )
If I told you that there was a large order in the market to sell EUR and buy GBP would you be looking to buy EURUSD or sell GBPUSD, do the opposite or step aside as the order gets executed?
This article is worth revisiting
How You Can Use Currency Crosses to Trade Spot Forex
EURGBP DAILY CHART – Retracing after a failed break
This cross was a driver in yesterday’s turnaround day and again early today, boosting GBPUSD while EURUSD lags.
For those trading EURUSD, yesterday’s run through stops at 1.0892 was driven by selling of this cross that saw GBPUSD buying take over after EUREUSD selling did not follow through. (I will post a link to an article on using crosses to trade SpotFX).
Looking at this chart, it has been straight up from a low at .8382 to yesterday’s failed break of .8620 to a high at .8626, leaving no obvious support levels below the market.
So let’s look at retracement levels using our Fibonacci Calculator
GBPUSD 4 HOUR CHART – Retracement
Once again, thanks to JP for alerting us to the 100 and 200 daily moving average zone yesterday, where GBPUSD found support, helped by the reversal in EURGBP.
The move up is so far just a retracement that would first need to break the trendline and then move through 1.2800-20 to suggest a reversal.
On the downside, look for support if it holds above 1.2735.
Otherwise, look for 1.2750 to set the intra-day tone of trading within 1.27-1.28
