Currency market: GBP/USD and FX next week

Brian Twomey Brian's Investment

As written yesterday, GBP/USD highs were located at 1.2197, 1.2214 and 1.2233. GBP/USD traded perfectly to 1.2214. Lows at 1.2072 and 1.2063 traded exactly to 1.2064. Then longs dead stopped perfectly at reported range top at 1.2174.

Vital to 1.2214 and 1.2063 are perfect levels. GBP/USD knew exactly where it would trade. If GBP/USD traded in between price at an interval then the message is GBP/USD contains a hesitant price and is not certain to direction.

The larger range yesterday was 1.2174 to 1.2009. GBP/USD traded 40 pips above 1.2174. Next week's range: 1.2181 Vs 1.2020.

GBP/JPY short strategy traded 200 pips lower. Longs next week must trade above 162.07.

DXY traded 178 pips this week while USD/CAD traded 124 pips. USD/CAD's months long problem is short ranges to DXY. USD/CHF traded 181 pips Vs DXY 178.

SPX traded 88 pips this week, 226 last week and 188 points 2 weeks ago. SPX trades consistent to DXY 200 ish pip ranges. A free trade to longs and shorts for free money occurs when SPX trades above or below DXY ranges.

EUR/USD's overall range this week began at 1.0283 to 1.0136. Next week: 1.0290 Vs 1.0155. EUR/USD big break for higher 1.0425. What is EUR/USD doing. Exactly nothing. The numbers may change slightly but the location remains the same week to week. Plus, EUR/USD trades consistent to ranges.

The number 00 to end an exchange rate trades but not very often. Today is unusual. GBP/USD top target today is 1.2200, AUD/USD 0.7000. USD/JPY 134.00.

USD/CAD price path today: 1.2876, 1.2884,1.2892, 1.2900, 1.2916, 1.2924, 1.2933.

GBP/JPY is an outlier currency pair and here's today's setup.

161.96, 162.06, 162.26, 162.36, 162.46, 162.56, 162.67.

Bottom 161.45 achieves by 161.65 and 161.85.

Upper target 162.67.

Continuation Fail 162.26.

Note ending numbers, 5, 6 and 7. GBP/JPY works on a 2 pip differential as a permanent fixture to its prices and won't ever change.

USD/JPY traded 415 pips this week while JPY/USD traded 235 pips. JPY/USD 235 Vs DXY 178 is key to USD/JPY.

USD/JPY big break for lower next week is located at 131.55 and the larger range trades from 136.12 to 133.83 then 132.69. Ranges inform next week 131.55 holds and we range trade.

AUD/USD will trade exactly as this week: Caught between AUD/EUR and EUR/AUD. As written Sunday, AUD/USD targets higher at 0.7080’s or longs from 0.6887 to 0.6913. AUD/USD 0.7080;s traded 0.7047 then perfect to 0.6887.

NZD/USD big break for higher is found at 0.6360. NZD/USD must break minimum 0.6325 for any chance at 0.6260 but then NZD/USD trades in no man's land and untouchable.

AUD/JPY 92.01 and NZD/JPY 83.53 for lower. Deeply oversold CAD/JPY must break 102.43.

EUR/CAD will trade next week from 1.3236 to 1.3088 while GBP/CAD trades from 1.5671 to 1.5499.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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