#GBPUSD continues it’s bullish run with no signs of slowing down just yet.
Could this offer us some trading opportunities this week?
In this video, we cover the key levels to watch on #GBPUSD #GBPCHF and #EURGBP.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
In this video, we’re going to go over the GB Pound pairs to watch.
The GB Pound is a very strong currency at the moment. We see many upsides to the GB Pound, primarily due to the recent Bank of England statement, suggesting that the economy is doing better than I thought it would. We have vaccinated so many people, so it could be a kickstarter to the UK’s economy ahead of other economies out there.
We’ve seen a massive rally to the GB Pound, and it looks like this is going to continue.
If I go into the weekly timeframe, we could see that the weekly chart shows us the weekly close from last week; it was very strongly bullish. We’ve also been monitoring the potential upside on the GB Pound because it hadn’t tested these key major areas like other major currency pairs.
I expected the market to head north. We’ve seen that the market is starting to do that. But, when will it end? Where could the market go?
And, 1.3977 is something called 1.3980s; it is something that I want to talk about because it’s the most traded level within this consolidation pattern.
When the market consolidates, that’s when institutions are doing their businesses. They’re leaving us breadcrumbs in the market by having consolidation zones: the larger the consolidation zone, the more likely something creates a breakout point, a retest, and a continuation of the trend.
We saw, here, that the market consolidated then broke to the downside. The sellers won at this point, and the price moved lower. We’re heading back, so I assume that that volume level there will be retested at 1.3980. If that’s the case, how do I trade it?
So, if I go into the daily timeframe, we can see that the price is trending to the upside, which we want to see. When we start discussing trends, impulses, and retracement phases, we want to see a four-hour uptrend. If I go to that four-hour uptrend, you can see the price is breaking these highs here, forming a new higher high.
What I’m looking for are areas to buy the market back up into that level. Now, one of two things will happen: we’re either going to get a daily retracement back down to a key area or key swing point, which would be around 1.3755. It hasn’t been tested, which was a very key breakout level 1.3755 is an area of low volume where the trend could continue for a long-term situation.
I think what will happen is a small short-term pullback, a continuation of trend into the 1.3980, a reversal back down into 1.3755, then a bounce, and whether it continues down or up at that point, it is going be something we’ve discussed. But, that’s if this level holds. The price could still blast right through that level. However, I feel like the market will probably pull back and retest 1.3750 at some point.
However, looking at this suggests that if I want to be a buyer in the short-term, 1.3856 would be the ideal level. I like to look at these key minor swing points for the price to pull back, go into a lower timeframe, and see if the trend starts to match up with the higher timeframe. I’ll be looking for any changes in trend around this point.
We had a comment on our Youtube Channel from Lesley who wanted to have a little look at GBP/CHF. So, I’m going to look at that now. GBP/USD is trending to the upside. You have to remember when you’re trading cross pairs, you’re not just trading the GB Pound against Swiss; you’re trading GBP/USD versus USD/CHF.
If I want this chart to move higher, what do I need to see? I need GBP/USD to rally, and I need USD/CHF to either go sideways or upwards because what I want is for the Swiss Franc to weaken and the GB Pound to strengthen.
We know that the GB Pound is very strong, heading towards a key area; and USD/CHF is on a little bit of a knife-edge at the moment. It’s not doing too much, which is why we see GBP/CHF push to the upside. And like we talked about on USD/CHF, it had an inverse head and shoulders pattern, we were looking for the market to short back down into that neckline, and we want to be careful now because the price could sink lower or react to it. After all, it’s a support, and it’s starting to go a little bit sideways, potentially even pushing slightly higher, which is what we want to see: the GBP/CHF to move higher.
Now, if the GB Pound will head towards that key level, then we need to look for a key level on GBP/CHF. 1.2490 is a decent level because if we look left, a huge area on the market where the price has found support, support, and resistance in the past.
Again, if I build it down and go into the daily timeframe, what’s the daily been doing? Well, it’s been retracing back here, it hit the previous four-hour highs there, and the daily highs reacted nicely. If this will be in an uptrend, now we need to look for areas where we can buy GBP/CHF. Now, I look at previous structure highs, and I look at the previous structure low as areas of support and resistance.
What we need to see is either a pullback down into 1.2283 and a reaction, or I need to see the price close a little bit higher and then come back and retest these structure highs for a long opportunity.
So, GBP/CHF is looking good. It’s been a nice uptrend here for a while now. I want to buy into that area because of the potential for the market to hit that key level of resistance.
Finally, I want to talk about EUR/GBP, there’s still some downside in EUR/GBP. I like the opportunity for the price to come back down towards this 0.8670 area here, in these previous structure lows.
Going into the daily timeframe, you can see that the weekly impulse to the downside has created a lovely downtrend on the daily timeframe here. Most recently, we had this consolidation breakout pattern forming.
Going into the four-hour timeframe – I’ve done my volume analysis on this before jumping into the video – and 8757 is a nice area of low volume, and I’m expecting the price to retest 8757 for some downside here.
Those are the GB Pound pairs to watch.
I hope you enjoyed the video update, if you did, please give it a thumbs up. If you have any comments or questions about the GB Pound pairs, how to trade them, or any charts you want to see featured in a video this week, drop the comment down below, and I’ll speak to you soon.
If you’d like to try trading any of the GB Pound pairs mentioned above, you can start with at least $100 on a live account at Blueberry Markets. Our customer support team will be there to support you every step of the way.