Sterling Breakout Underway- GBP/USD Levels


Sterling Technical Price Outlook: GBP/USD Weekly Trade Levels

  • Sterling technical trade level update – Weekly Chart
  • GBP/USD Breakout underway / threat for deeper correction into January
  • Constructive while above yearly open at 1.3646– critical resistance steady into 1.3955

The British Pound is poised to mark a fifth consecutive weekly advance with GBP/USD rallying more than 3% off the January lows. A breakout above key technical resistance suggests further upside in the days ahead as Sterling rallies to multi-year highs. These are the updated targets and invalidation levels that matter on the GBP/USD weekly technical chart. Review my latest Strategy Webinar for an in-depth breakdown of this Cable trade setup and more.

Starts in:

Live now:

Feb 15

( 13:02 GMT )

Live Weekly Strategy Webinars on Mondays at 12:30GMT

Weekly Scalping Webinar

Register for webinar

Join now

Webinar has ended

Sterling Price Chart – GBP/USD Weekly

Sterling Price Chart - GBP/USD Weekly - British Pound vs US Dollar Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; GBP/USD on Tradingview

Notes: In my last Sterling Weekly Price Outlook we noted that GBP/USD had, “stalled at confluence trend resistance into the start of the year…It’s important to note the technical significance of this resistance threshold – expect substantial acceleration in the event of a topside breach here.” Sterling held this resistance zone for more than six-weeks with a breakout yesterday fueling a rally of more than 0.8% this week.

The breakout keeps the focus higher in price with initial resistance objectives eyed 1.3955/97 – a region defined by the 61.8% Fibonacci extension of the March advance and the 2018 high-week reversal close. Look for a larger reaction there IF reached for guidance with a breach exposing the 1.43-handle. Initial support now at 1.3743 backed closely by the 1.3675. Ultimately, a break / close below the objective yearly open at 1.3646 is needed to shift the focus lower again in Sterling.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom Line: A Sterling breakout is underway after breaching above critical confluence resistance and keeps the GBP/USD outlook weighted to the topside near-term. From a trading standpoint, look for downside exhaustion ahead of 1.3675 on pullbacks IF price is indeed heading higher with initial resistance objectives eyed above the 1.39-handle. I’ll publish an updated Sterling Price Outlook once we get further clarity on the near-term GBP/USD technical trade levels.

GBP Forecast

GBP Forecast

Recommended by Michael Boutros

Download our latest quarterly GBP/USD Price Forecast

Get My Guide

Sterling Trader Sentiment – GBP/USD Price Chart

Sterling Trader Sentiment - GBP/USD Price Chart - British Pound vs US Dollar Retail Positioning

  • A summary of IG Client Sentiment shows traders are net-short GBP/USD – the ratio stands at –1.92 (34.19% of traders are long) – typically bullish reading
  • Long positions are6.99% higher than yesterday and 17.68% lower from last week
  • Short positions are4.74% higher than yesterday and 32.96% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise. Traders are less net-short than yesterday but more net-short from last week. The combination of current positioning and recent changes gives us a further mixed GBP/USD trading bias from a sentiment standpoint.


Data provided by

of clients are net long.

of clients are net short.

Change in Longs Shorts OI
Daily 5% 1% 2%
Weekly -16% 42% 15%

Learn how shifts in GBP/USD retail positioning impact trend

Get My Guide

Key UK / US Economic Data Releases

UK / US Data Releases - GBP/USD Economic Calendar - British Pound Event Risk

Economic Calendarlatest economic developments and upcoming event risk.

Previous Weekly Technical Charts

Forex for Beginners

Forex for Beginners

Recommended by Michael Boutros

New to Forex Trading? Get started with this Beginners Guide

Get My Guide

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

Read more here