GBP/USD – Are We Heading For Post-Brexit Highs?

Greenback Sell-Off Sees GBPUSD Eyeing 18-Month Highs

The pound has been drifting lower against the dollar for most of December and during that time, despite finding firm support around 1.33, further losses appeared to be on the horizon.

The descending triangle that formed over the course of this month is typically a bearish signal, with a break below 1.33 being confirmation of this. On this occasion, that break never came, with the dollar sell-off over the last couple of days triggering a move above the triangle instead.


OANDA fxTrade Advanced Charting Platform

With the pound not performing particularly well against other currencies, it’s clear that this is primarily a dollar-driven move.

There are a number of technical levels to watch out for, with 1.3550 offering initial resistance to the upside, with it having been the most recent peak at the start of the month.

Above here, there are a number of resistance levels between 1.36 and around 1.3650, a break above which would see the pair trading at its highest level since the immediate aftermath of the Brexit vote in June 2016.

Below, support can still be found around 1.33, although if we see a correction of the recent rally it’s worth keeping an eye on key Fib levels (38.2%, 50% and 61.8%) as well as the area around 1.34-1.3425, with it being the most recent area of support and resistance.


DAX Dips Lower, Markets Eye German CPI

EUR/USD – Euro Pushes to 13-Week High, German CPI Next

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)