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 Broke Down During Last Session - 18 December 2014

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 broke down during the course of the session on Wednesday, but we remain above the 1.55 handle. Because of this, I am not ready to start selling this pair but I do recognize that a move below the 1.55 level is indeed very bearish and it should continue the downtrend heading down to the 1.50 level which of course is a massive round number. I think that this is more or less a statement on the US dollar instead of the British pound. With that being the case, I know that the US dollars favored by most traders around the world, and that of course isn’t going to be any different in this particular marketplace.

I have no interest in buying this market at the moment, and in fact I’ll think the trend changes until we get well above the 1.60 handle, which of course looks very unlikely at this point. I believe that the consolidation that we’ve been in for some time now should continue to be the norm, except the aforementioned break down below the 1.55 handle. If we get that, I would be massively short of this market.

It’s all about the greenback

At this moment time in the Forex markets, it’s all about owning the US dollar. I think that really is what’s going on in this pair although Great Britain of course is heavily reliant on exports into the European Union, which is a necessarily the greatest thing to have on your side right now. With that being the case, I believe that we do see continued weakness and I would be willing to sell short-term rallies as long as we stay below the 1.60 handle. I need to see resistive candles, but that shouldn’t be that hard find quite frankly.

In a world where quantitative easing seems to be the norm, the Federal Reserve of course is the one major outlier. With that being the case, I think the US dollar continues to strengthen and we will see this pair hit the 1.50 level sometime in the course of the next month or so, which keeps me bearish.

GBPUSD 121814

Christopher Lewis
About 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