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Forex Market: GBP/USD daily trading outlook

Friday’s trade saw GBP/USD within the range of 1.4450-1.4594. The pair closed at 1.4503, falling 0.59% on a daily basis. It has been the 16th drop in the past 25 trading days and also a second consecutive one. In weekly terms, GBP/USD appreciated 1.80% last week, or the most since the week ended on June 21st 2015, when it added 2.09%. It has been the second gain in the past five weeks. The pair has advanced 2.08% so far during the current month, following three consecutive months of losses.

At 8:06 GMT today GBP/USD was edging up 0.15% for the day to trade at 1.4531. The pair touched a daily high at 1.4547 at 7:43 GMT, overshooting the range resistance level (R3), and a daily low at 1.4490 during the early phase of the Asian trading session.

No relevant macroeconomic reports and other events, which may influence GBP/USD trading, are scheduled on Monday.

Correlation with other Majors

Taking into account the week ended on February 5th and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

GBP/USD to NZD/USD (0.9482, or very strong)
GBP/USD to AUD/USD (0.8412, or very strong)
GBP/USD to EUR/USD (0.8362, or very strong)
GBP/USD to USD/CHF (-0.7104, or strong)
GBP/USD to USD/JPY (-0.7801, or strong)
GBP/USD to USD/CAD (-0.9631, or very strong)

1. During the examined period GBP/USD moved strongly in the opposite direction compared to USD/CHF and USD/JPY.

2. GBP/USD moved almost equally in one and the same direction with EUR/USD, AUD/USD and NZD/USD during the past week. This relationship has been the most pronounced between GBP/USD and NZD/USD.

3. GBP/USD moved almost equally in the opposite direction compared to USD/CAD during the period in question.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:

R1 – 1.4516
R2 – 1.4529
R3 (range resistance) – 1.4543
R4 (range breakout) – 1.4582

S1 – 1.4490
S2 – 1.4477
S3 (range support) – 1.4463
S4 (range breakout) – 1.4424

By using the traditional method of calculation, the weekly pivot levels for GBP/USD are presented as follows:

Central Pivot Point – 1.4466
R1 – 1.4707
R2 – 1.4912
R3 – 1.5153

S1 – 1.4261
S2 – 1.4020
S3 – 1.3815 is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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