GBP Trader Update

May 17th, 2021

The good news for the UK economy is that today the British people are having many Covid restrictions lifted. Grandparents can hug grandchildren and the pubs are open for indoors drinking! The UK will benefit from the freedom of movement and travel, and of course, let’s not forget all the lockdown savings, people have yet to spend.

However, a note of caution has been sounded over the increase in cases of the Indian variant of Covid. Which the UK Government has said is not a problem if you are fully vaccinated.

GBPUSD

The Pound is trying to test resistance at 1.4120 if broken will lead to a retest of last weeks high of 1.4160 as a target, however, it is looking a little tired and overbought. If the GBP finds some momentum and can break up to 1.4160 the next level to look for is 1.4220.

Support for the GBP is going to be found on a dip 1.4060 and in the 1.4020 to 1.4000.

GBPJPY

Failing US Bond Yields are helping out the JPY, as inflation worries in the USA are being conveniently forgotten for the time being. In doing so it is keeping resistance intact at 154.40. A break here would then open up a run to 155.00.

Failure to break up will likely see support at 153.80 tested and possibly a deeper correction to 153.20. The most likely outcome is probably range trading in the early part of the week.

GBPCHF

The GBP remain below the key pivot point of 1.2740, while below this level another test of 1.2680 is probable. A break of 1.2680 would then open up 1.2620.

However, above 1.2740 again we will see a run to the previous high of 1.2800.

Analysis provided by http://www.eightdragonscapital.com

For more information on trading forex contact support@8dragonstrade.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: