British Pound Technical Forecast: GBP/USD, GBP/JPY, EUR/GBP

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British pound te Fornic prognosis: bullish

The British pound set a new three-year high against the US dollar this week. And while that claim is somewhat self-evident, the context is much less clear, as that push to a recent high has only brought about a rapid retreat that has so far equated that recent high as a false escape. Elsewhere, there has been slow work in the British pound against both the yen and the euro, even despite the recent trend of GBP strength shown visibly in both pairs.

In GBP / USD, the pair came into the week with four consecutive weeks of gains. But a well-known trend line once again raised its ugly head, as the same support trend that held the lows from November to March emerged as resistance in May. Price action continues to rub the underside of this trend for more than a month, with the initial resistance inflection showing on April 20th.th around the 1.4000 point.

Daily Price List of GBP / USD

British Fund Technical Forecast: GBP / USD, GBP / JPY, EUR / GBP

Diagram prepared by James Stanley; GBP / USD at Tradingview

Despite this threatening superior resistance, GBP / USD remains slightly optimistic in shorter time frames, similar to what I looked at last Wednesday’s website. If USD weakness shows pronounced, the top of the pair may remain as attractive as price as a few weeks ago near resistance.

As I participated in that webinar seminar, this may allow gamer strategies to address previous trend sideways bias. The forecast for GBP / USD will be growing for next week. I also researched GBP / USD in the recently posted Analyst Selection.

GBP / USD technical forecast: bullish

GBP-USD Four Hour Price Chart

British Fund Technical Forecast: GBP / USD, GBP / JPY, EUR / GBP

Diagram prepared by James Stanley; GBP / USD at Tradingview

GBP / JPY Stops as Resistance Enters

GBP / JPY has been similarly strong, with the past five weeks producing gains in the pair until this week there has finally emerged some resistance. The pair broke above the psychological level 155 last week and this week seemed to highlight buyers trying to garner support around this level. But – each of these support bounces began to diminish impact, leading to the construction of a downward triangular formation.

Such patterns will often be approached for the purpose of low escapes, and this could produce a slightly deeper back in the pair. The forecast will be neutral for GBP / JPY for next week.

Technical Forecast for GBP / JPY: Neutral

GBP-JPY Four Hour Price Chart

British Fund Technical Forecast: GBP / USD, GBP / JPY, EUR / GBP

Diagram prepared by James Stanley; GBP / JPY at Tradingview

EUR / GBP Grabbed at Confluent Support

There may be some reverse potential in EUR / GBP for the next week, mostly based on holding at really big support. But, similar to the shorter-term support seen above in GBP / JPY, each of those support rebounds has brought a lesser impact, leading to the construction of a downward triangle that is often approached with the aim of bearish explosions.

The support zone, which kicked off this week, conspires from .8566-.8581, produced by two different Fibonacci rails. But the key observation of this week is that the test of this support zone has produced a higher-than-low of what was shown in the last test.

So a hold at a key support zone along with a higher-lower is both bullish factors while the downward triangle is a bearish indication. Given this divergence, the forecast for EUR / GBP will be neutral for next week.

Technical Forecast EUR / GBP: Neutral

EUR-GBP Four Hour Price Chart

British Fund Technical Forecast: GBP / USD, GBP / JPY, EUR / GBP

Diagram prepared by James Stanley; EUR / GBP at Tradingview

— Written by James Stanley, Senior Strategist by DailyFX.com

Contact and follow James on Twitter: @JStanleyFX



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