Sterling Pound Price Outlook: GBP/CAD, EUR/GBP, GBP/USD, GBP/USD

GBP/CAD, EUR/GBP, GBP/JPY, GBP/USD PRICE FUNDAMENTAL ANALYSIS

  • GBP/CAD surged earlier this week and the GBP/USD added some substantial movement, whereas both GBP/JPY and EUR/GBP bring extra questions about continued GBP strength.
  • The bank of England hosts the rate decision back on Thursday alongside the inflation reports, which are the biggest contributors to the week’s economic calendar.
  • It was a great week for the GBP as the currency gained against the Canadian dollar, Euro, Japanese yen, and the US Dollar.

GBP BREAKS OUT, GBP/USD SURGE ABOVE 1.3000 KEY PSYCHOLOGICAL LEVELS

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Overall, it was a great week for the GBP, especially against the USD with the GBP/USD jumping above the psychological 1.3000 levels. This was the first time it has managed to do this since March. In essence, this psychological level revealed the tendency to pause the move. No such a thing has been revealed in the week as the combination of the GBP strength with the highly aggressive USD weakness catapulting the pair by over 300 pips.

Essentially, the bulls remained large and completely in charge as we headed into the Friday trading session where the buyers pulled back with the march swing high coming into view. This helped generate what has been a great pullback in such a move. Presuming the candle finishes the day in a positive zone, we are looking at about 11 straight days of the GBP/USD gains.

GBP/USD Price Chart

gbp

GBP/JPY CLOSER TO THE DANGER TERRITORY

This has been a great week for the GBP/JPY with the pair gaining over 300 pips as it broke out to new monthly highs. Essentially, for any trader looking into the USD/JPY, it was crystal clear that the US Dollar has become very weak. However, this shows that the GBP is currently doing very well and is much stronger than the JPY as well as the USD. As we head into next week, the main question is how the bullish traders remain to be?

As of now, we are seeing lots of resistance at 61.8% Fibonacci retracement, which is the same handle that helped turn around the surge in June, and even if this zone might be taken out, there is no doubt that another larger resistance zone will still come.

In this case, it is difficult to forecast any short-term behavior considering how established this range has grown to become. Therefore, in the coming week, the projection will be set at neutral because of a lack of range. Nevertheless, for buyers seeking some mean reversion that they can work with, the EUR/GBP might be an important factor even for GBP Forecast – GBP/JPY, GBP/USD to Face Brexit.

GBP/JPY Daily Chart

GBP/CAD SURGES – WHAT NEXT?

It was a great week for the GBP/CAD, with the pair gaining over 500 pips. For the coming week, this strength might still be an important point of focus. It will also open more doors for continuation. Some pullback handles ought to be assessed for support potential like the 1.7500 key psychological handles or perhaps the 1.7432 Fibonacci handles. Both handles will open doors for the continuation of higher lows and higher highs.

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