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Pound Targeting 1.3500?

The Pound could be targeting the 1.3500 round level in June. Exhibit A is the chart below. Notice how after a strong +900 pips rally from the lows the pair is now consolidating. The fact that we're currently quoted less then 200 pips below the highs signals to me that this is just a healthy retracement on the way to more gains. The UK election is coming up soon and that should act as a price catalyst as well.
But what could be our target? The nearest resistance level can be found at the 1.3448 s…
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Lack of Trends in EUR/GBP

The EUR/GBP opened April at 0.8496. During the month the pair traded to a high of 0.8590. From here we fell to a low of 0.8312, only to rally back higher.
The 278 odd pips of range is not a lot for one month of trading in a major currency pair. This underscores that apart from the direction, the volatility has been absent as well. We are currently quoted at 0.8426, barely 70 pips away from the month's open.
On the longer-term charts the bias toward range-bound trading is visible as well. On the …
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More of the Same in EUR/GBP

The EUR/GBP seems destined to continue in the path of mean reversion. Look at the daily chart below. After an initial bump to 0.9300 in October during the post-US-election chaos, prices fell back to the 0.8500 range. This is where we've been trading since around August of 2016.
On the second chart below we're seeing a similar picture on a lower timeframe. Here it's the 4 Hour chart that shows how during the last month (March) this currency pair exhibited a similar pattern. First we rallied stron…
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fxsurprise8 avatar

The EUR/GBP opened April at 0.8496, 10 pips above my forecasted price. During the month the pair traded to a high of 0.8590. From here we fell to a low of 0.8312, only to rally back higher. (see chart above).

The 278 odd pips of range is not a lot for one month of trading in a major currency pair. This underscores that apart from the direction, the volatility has been absent as well.

We are currently quoted at 0.8426, about 60 pips away from my target. Hopefully with some end of month luck I can get closer to my forecasted price of 0.8486.

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Cable to Rally Post-Brexit

I expect Cable to rally in the aftermath of the start of Brexit negotiations. First reason for this is the fact that the worst is now behind the UK. Markets have pummelled the Pound in the ground already discounted a lot of negative scenarios. Thus a positive surprise could led to large GBP rally.
The second reason is our first chart above. Notice the three bottoms pattern. Some may see an irregular Head and Shoulders formation. In any case it looks like the bears have checked out and the bulls…
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Pound to Head Toward 1.3000

It’s been a rough two-and-half years for the Pound. The pair lost over 5,000 pips from its highs back in July 2014. But even during the middle of that carnage we had some ‘dead cat’ bounces. On our first chart below notice how we get these small rallies whenever the Stochastic Oscillator dips below 20 and then recovers and heads higher.
With hindsight these small uptrends may not seem like much on first glance, keep in mind that this is a monthly chart. The duration of one TA contest cycle enco…
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Elens94 avatar
Elens94 1 Dez

Excellent stuff !

TInna avatar
TInna 1 Dez

well done!

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EUR/GBP Stalls at Resistance Levels

The long-term trend in the EUR/GBP is undoubtedly up, prompted by the weaker Pound and exacerbated by Brexit. But the rally is hitting against some serious road-block in the face of several multi-year resistance levels. First we have the 2011 high at 0.9086. This is followed by the 2009 high at 0.9407 and finally we have the 2008 high at 0.9804.
During the past few weeks the pair topped out just below this second one of the resistance levels above and is now heading down. Take a look at the shor…
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Brexit Support Will Not Hold

Cable has been relatively stable post-Brexit. The lows hit shortly after the event have yet to be broken. But the bears are not giving up yet! On our first chart below we can see that prices have made two attempts post-Brexit to crack the 1.2800 support. So far the level is holding but with each new test, the odds increase that we will see a break.
On our next chart below we can see that the long-term trend for GBP/USD has been down. We are currently quoted over 4,000 pips below the highs noted…
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Buying the Pullback?

With the Brexit panic subsiding , the GBP/USD could finally find a bottom. On the 4 Hour chart below we see an interesting formation. We were in an upward trend which then stalled on some post-Jackson Hole Dollar gains. But now we're moving back up again. This could be a classic buy the pullback opportunity.
Another reason why more gains may follow is the oversold situation in Cable. On the weekly chart below we can see how unrelenting and one-sided the selling has been since 2014. We're now dow…
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Cable is Oversold

The GBP/USD dropped over 10% shortly after Brexit. While we've had some stabilization since then, prices are still relatively low as can be seen on the chart below. The weekly Stochastic Oscillator is still in oversold territory at 14.
Let's take a look at the lower timeframe chart. Cable hit a low of 1.2797 in the Brexit aftermath. Later on prices retraced to a high of 1.3480 and we're currently quoted at 1.3233. The 4H chart shows a choppy but undeniably upward sloping movement.
The weekly is …
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Cable to Clawback Some Brexit Losses

I expect Cable to clawback some of the post-Brexit losses. As you probably know unless you lived under a rock, past week the UK voted to leave the EU. This crashed the Pound from over 1.5000 to just 1.3291 right now. A combination of uncertainty and increased odds for extra QE by the BOE lead to severe losses. Few days ago a low point of 1.3116 was hit. I have a reason to believe this is the lowest we'll get, at least this summer.
For one, look at the daily chart below. The Stochastic Oscillator…
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