British Pound, GBP/USD, GBP/AUD, GBP/CAD, GBP/NZD – Technical Outlook
The British Pound is attempting to regain some lost ground against the US Dollar as of late, but the broader trend remains biased cautiously lower for GBP/USD. A combination of a ‘Death Cross’ between the 20- and 50-day Simple Moving Averages (SMAs) and the breakout through rising support from 2020 underpin a bearish outlook. Keep a close eye on the 50-day SMA, it could reinstate the focus lower if prices aim higher.
GBP/USD Daily Chart
The British Pound may extend gains against the Australian Dollar as GBP/AUD continues to trade above the former 1.8453 – 1.8527 resistance zone. This is as a ‘Golden Cross’ between the 20- and 50-day SMAs continues to uphold a near-term upward bias. Immediate resistance appears to be the 123.6% Fibonacci extension at 1.8789. Keep a close eye on the SMAs in the event of a turn lower. These may act as key support.
GBP/AUD Daily Chart
The British Pound may continue its consolidation against the Canadian Dollar. Although, GBP/CAD’s bias could remain favored cautiously to the upside. This follows a break above a falling trendline from February and a ‘Golden Cross’ between the 20- and 50-day SMAs. Immediate resistance points seem to be at 1.7427 followed by 1.7570. In the event of a turn lower, keep a close eye on the 1.7177 – 1.7230 inflection zone.
GBP/CAD Daily Chart
The British Pound may also continue to aim cautiously higher against the New Zealand Dollar, with rising support from December underpinning GBP/NZD’s upside bias. Immediate resistance seems to be the 1.9879 – 1.9961 inflection zone. However, keep a close eye on RSI. Negative divergence may emerge in the event prices expose the August high of 2.0271. That would be a sign of fading momentum, hinting at a turn lower.
GBP/NZD Daily Chart
— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter