|Day's Range||147.147 - 148.538|
|52 Week Range||143.663 - 156.087|
The British pound rallied significantly during the day on Tuesday, reaching towards a major downtrend line. It looks as if we are going to test the size, but don’t be surprised if we get some type of short-term pullback as there are a lot of moving pieces around the world that will continue to affect risk appetite.
The British pound has rallied again to kick off the week on Monday, in a bit of a surprise as more tariffs are very likely to be introduced against China. If that’s the case, one would think it would be more of a “risk off” environment. However, that doesn’t seem to be the case at all.
The British pound initially tried to rally during the day on Friday but rolled over as it was revealed that Labour is likely to vote against the Brexit deal. This of course has people worried about the British pound, so a pullback makes complete sense.
The British pound rallied significantly for the week against the Japanese yen, as we approached a significant downtrend line. However, we have broken through the top of two shooting stars and as such we have a hint as to where we are heading next.
The British pound rallied significantly against the Japanese yen on Thursday, reaching towards the ¥146 level. However, there is a lot of noise just above and when you look at the longer-term charts, it’s not quite as impressive as you think.
The British pound pulled back a bit on Wednesday against the Japanese yen, but at this point there is still a lot of impulsive buying underneath. This should continue to provide a little bit of support, but keep in mind that this pair will be very noisy due to the Brexit negotiations.
The British pound was very noisy against the Japanese yen on Tuesday as more games being played by the negotiators and the Brexit continue to rock the markets. The EU officials, and of the UK not “crossing the red line” followed very quickly by an Irish officials, and that a Brexit deal could happen in a few weeks of course has caused absolute mayhem.
The British pound rallied during the trading session on Monday, as an EU official suggested that a Brexit deal could be completed within two months. Remember, markets hate uncertainty so it makes sense that we would rally based upon any type of certainty, regardless of whether it was good or not.
The British pound went back and forth during the week against the Japanese yen as we continue to have a lot of moving headlines when it comes to the British pound and all things related to it. Beyond that, this pair does tend to react to global trade.
The British pound jumped higher against the Japanese yen during trading on Friday, and what would have been very hectic action due to the jobs number coming out of America. As you can see on the hourly chart, we have smashed directly into resistance.
The British pound has had a tough go of it recently, as we had seen it rally so significantly the last week, only to see it fall back down. However, it’s done it again and now the question is will it return to the lows?
The British pound exploded higher during trading on Wednesday, as it was stated that both Great Britain and Germany had dropped their most difficult demands involving the Brexit. Because of this, the British pound has probably just changed trends.
EURUSD tested the 1.153 support! That is a crucial line for the long-term situation on the chart (neckline of the huge H&S formation). A test was positive for the buyers as the price bounced and went 80 pips higher creating a long tail on the daily candle. This optimism is not kept today as the price is about to test this support again. Price closing a day below that level will be very negative.
GBPUSD extends the losses but no surprise here as the bearish setup is very technical. The price bounced from the long-term resistance on the 1.303 and from the mid-term down trendline. What is more, we broke the lower line of the flag and the horizontal support on the 1.293. All that together gives us a strong sell signal.
One of the best setups at the beginning of the week can be found on the GBPUSD. The pair is on the back foot and the main reasons for that, from the fundamental point of view, are the weaker PMI number and the new comments from Mr. Barnier regarding Brexit. This comes in line with the technical analysis, which was giving us a sell signal as early as on Friday.
The British pound gave up much of the gains for the week, turning around to form a bit of a shooting star for the weekly candle. I think that this market continues to be very jittery, especially considering that we have a couple of different things moving it.
The British pound broke down during the trading session on Friday, almost wiping out the entire gains from the impulsive move after rumors came out that the EU and the UK were coming close to some type of deal. If the impulsive move gets wiped out, that’s a bad sign.
The British pound pulled back slightly against the Japanese yen during trading on Thursday, giving back some of the gains. However, this is still a very bullish looking pair now, and I think the impulsivity after headlines crossed the wires that the UK and the EU might be coming closer to an agreement will continue to carry the day.
The British Pound performed its sharpest strengthening in 7 months on the softening tone of the EU in the negotiations about Brexit. China pulls down global stocks.
The GBP/JPY, popular “Dragon” has formed a cup with handle pattern that is yet to be developed. The structure has formed exactly at M L5 Pivot Point. However, the presence of W H3 and W L3 pivots indicate that traders need to wait for further action. A close above W H3 – 143.61 is bullish and the price should reach 144.32 and eventually 145.52. A close below W L3 – 142.19 is bearish and targets are 141.49 and 140.29.
The British pound rallied during the trading session on Tuesday, as the “risk on” rally overall continues. That bodes well for this pair typically, and we have seen the usual correlation between higher asset prices and this pair rising.
The British pound initially dipped during Asian trading on Monday, but bounced from the ¥142.50 level, an area that has mattered more than once. Because of this, I think we are going to continue to try to break out to the upside, especially if we can keep trade relations from souring.
The last week was very eventful for the USDJPY. Apart from the technical analysis, positive sentiment was strengthened here by the rise of the global exchanges. In the last week, USDJPY broke three important resistances.
The British pound bounced nicely against the Japanese yen, breaking the top of a shooting star shaped candle from the previous week. When you form a shooting star at the bottom of a downtrend, it typically means continuation. However, we break the top of it shows that a lot of people just lost money trying to short this pair.
The British pound rallied against the Japanese yen during trading on Friday, to round off a week of positive momentum for Sterling. As markets recover and start to look rather healthy, it makes sense that “The Dragon” roars.