Technical update - Sterling facing massive weakening against USD and EUR Technical update - Sterling facing massive weakening against USD and EUR Technical update - Sterling facing massive weakening against USD and EUR

Technical update - Sterling facing massive weakening against USD and EUR

Forex 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Sterling is facing potential massive weakening against USD and EUR. GBPUSD rejected at 1.2445 and seems to be unfolding a double top pattern with potential to 1.12 area
EURGBP broke above key resistance and is now looking at 0.90 possibly 0.92


Today's Saxo Market Call podcast.
Today's Market Quick Take from the Saxo Strategy Team

GBPUSD
the resistance at 1.2445 seems to be too strong for GBPUSD to break and sellers have now taken control. GBPUSD is testing the lower rising trendline and is likely to break below. If it does there is no strong support until around 1.1840 but 200 and 100 daily moving averages will provide some support.
A close below 1.1840 will confirm a Double Top pattern unfolding with downside potential to around 1.1145 support illustrated by the two vertical arrows.
For GBPUSD to demolish the scenario a close above 1.2445 is needed.

Data and chart source: Saxo Group

Medium term: GBPUSD was rejected at the cloud and is forming a Evening Doji like pattern which is a indication of a top and reversal.
A weekly close below 1.1840 medium-term bear trend has resumed. Weekly RSI has been rejected at the 60 threshold twice now i.e., it is resuming negative sentiment.
the potential Double Top target is close to the 0.618 retracement of the massive bounce in Q4 2022.

EURGBP Closed yesterday above resistance at around 0.89 confirming uptrend with short-term potential to 0.90. where it will find some resistance and the 1.618 projection of the latest correction before the break out.
For this bullish scenario to be reversed a close below 0.8720

 

Medium term: EURGBP has resumed uptrend after a correction. Weekly RSI is bullish with no divergence indicating higher EURGBP. Minor resistance at around 0.8935-0.90.
A close above 0.90 will pave the way towards 0.92.
Monthly chart shows how EURGBP has moving in a wide sideways range with slightly lower spikes.
If we are going to see a another spike in EURGBP approx. same height or maybe slightly lower than the previous spikes a potential target would be around 0.90-0.9250.

Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.