Our Forex Buy/Sell Trading Signals recently forecast British Pound advances against the US dollar, as our Momentum system signals that the GBPUSD may rally through short-term trade. Yet the GBPUSD remains near its lows, and our “Breakout” system trade from yesterday actually got stopped with its trailing stop during the overnight session. Given that the medium-term GBPUSD trend remains down, we should take a closer look at justifications for going long the British Pound against the US dollar.
According to our Senior Strategist Jamie Saettele, technical outlook for the British Pound suggests that a turn is imminent, and a rally through 1.7705 would show that the short-term trend is up. His analysis is based on Elliott Wave counts and also his studies of Sterling-US Dollar Positioning according to the CFTC Commitment of Traders Report.
It seems increasingly likely that the GBPUSD will show a fairly significant rally after such extended declines, and our counter-trend buy indication from DailyFX+ buy/sell signals seems to have a reasonable chance of success. See more Forex Buy/Sell Signals on DailyFX+ and be sure to monitor any updates on these specific signals, as our automated forex signals can and do change on a daily and intraday basis.
For more information and guides on using our DailyFX Buy/Sell Signals, see our Weekly Forex Trading Strategy Outlook report.