Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

GBP/USD Daily Outlook - Mar. 5, 2013

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The GBP/USD pair had a strong session on Monday, something that is a bit of an anomaly these days. This market has been dropping like a stone for some time now, and the fall to the 1.50 level has been stunning. In fact, I have spent more than one wasted trading session waiting to see a supportive candle in this market, as the bears have simply been in overdrive.

The Pound is indeed in a lot of trouble, and the British economy is expected to head into a recession again. For that matter, inflation is also showing rearing its ugly head, and as a result it is becoming more and more obvious that the Bank of England is expected to have to take drastic measures in the near future. Adding to that is the fact that the head of the Bank of Canada is about to take of the head of the Bank of England job. Mr. Carney has already stated that the next move should be easing, and as a result there has been very little reason to buy the Pound lately.

Dollar strength

On top of all of that, the US Dollar itself has been strengthening. In a perfect storm like this, the pair could only fall in the long run. The action that we are seeing at the moment makes sense though, as the 1.50 level is a large round number that should attract a lot of attention by traders as well. However, there is little reason for this pair to keep itself above that area other than the number itself.

GBPUSD Daily

Looking forward, I believe this pair goes down to perhaps 1.45 or so. The area that we are trading in at the moment could provide a short-term trading opportunity for the buyers, but I can’t see that much has changed between these two currencies. The weakness will eventually show itself again, and as a result I think the best way to trade this pair is to simply fade the rallies at this point. I think any time you get a weak looking daily candle – there is a chance to sell.

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews