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GBP, JPY, CAD Forecast: As we watch some of the biggest movers today and as of recent, check out our forecast on these three forex currencies.

GBP Forecast

The pound continues to look bullish on most accounts as investors expect a total of 4 rate hikes from the BOE this year after the 15 basis point raise in December. With heavy bearish sentiment by retail traders and COT data, the pair keeps pushing up but is now slowing the pace as the pound-dollar cross is down -0.23% today.

Additionally, fears of Omicron slowing the global economy have staggered the major pairs going into the New Year, but the sterling was able to outpace most currencies with the anticipation of future rate hikes while trying to lock in their 2% inflation target. GBP seems mostly bullish over the yen and loonie for this week’s forecast. 

GBP, JPY, CAD Forecast
Price extended downward on the 1D timeframe and is now resting on support in the 156.200s. Additional support lies below around 154.700s.

JPY Forecast

With a near-certain continuation of the decade-long loose monetary policy, investors do not expect the yen to see much demand in the coming months while other major governments attempt to increase their hawkish stances toward the economy and fiat money. 

Thus, the negative (-0.1%) interest rate could be starting to look less attractive to banks and financial institutions as other countries are tightening their monetary grips. The yen forecast looks bearish mostly against JPY, GBP, and CAD. But it looks bullish against USD this week.

GBP, JPY, CAD Forecast
The pair broke under strong support and continues to head lower to the bottom of the long-term channel on the 1D chart.

CAD Forecast

Driven primarily by oil prices, the Canadian loonie is now slowing down as we start this week. Institution interest has not been very prevalent lately, so big money shifts aren't going to be much of an influence on this currency. An article by Reuters mentioned that the quick rise in demand combined with the harsh cut-back in production has caused "backwardation". This means that global supplies will start to rise again, and this will incentivize producers to sell oil quickly causing the price of oil to drop in the coming months. Overall, CAD's forecast looks strong against the yen, but weaker against GBP and USD.

GBP, JPY, CAD Forecast
GBPCAD looks bullish after making higher highs and lows and the daily candles as today's candle is now bouncing up from support on the 200 DMA. Resistance sits right above around 1.72699.

To find more analysis, visit the A1Trading for more price predictions and forecasts.

After The BOE's latest announcement of their rate hike, pound (GBP) pairs went flying higher. Some of this has to do with the fact that England is one of the first to tighten their grip on monetary policy while most other countries like the US are only pointing towards rate hikes without actually doing it yet. With that said, here are some of the biggest setups on GBP pairs.

Inflation Control

The December 16 rate hike to .25 from .1% was the first step to keeping their 2% inflation target in sight without getting out of control. The current inflation level is sitting around 5% according to CNBC, which is still pretty high but not too out of control for the Sterling.

Additionally, Endgland is projected to be the fastest recoverer from the pandemic in the G7 countries, more so than the US and Canada.What we may start to see is a sentiment shift from USD and CAD to GBP.

Best Setups on GBP Pairs:

Setups on GBP
GBPAUD

Pound aussie showing significant strength on the daily timeframes price comes up to test a previous top around 1.89000s. Continued momentum looks probable as demand drives up the pair's price for a second test at resistance. A break above this level could push price higher to the 1.90000s.

Setups on GBP
GBPJPY

Pound yen still looks strong on the 1D after pulling back to a steeply rising trend line. Support lies below around the 156 and 155 levels should price move lower. However, if price closes with rejection form today's lows, we may see a continuation to the highs around 158.

The yen has been the most volatile across the board all day, and there a few reasons why. It seems that investors are more hesitant on the Japanese economy now that stricter monetary policy seems to be more prevalent in other countries more so than in Japan. The economy is expected to continue recovering, but it will do so at a slower pace. Super loose monetary policy for the past decade is likely to continue this year causing the yen will be consistently out of favor. Having said that, here are some yen pairs to watch on this wild trading day.

Bullish potential still seems probable for these three pairs right now although COT is buying up lots of futures contracts on the yen. However, the persistent easing drives investors away from the yen and brings them towards stronger currencies that plan to tighten monetary policy this year.

Yen Pairs To Watch

USDJPY (Dollar Yen)

yen pairs to watch

Dollar yen had a strong day as the pair flew up to the highs of 116.300s before taking a minor retrace on the 4H. Although the previous candle showed rejection from the lows, we still might see a further move downward to support which lies around 115.500s. UJ is now at the levels not seen since January of 2017.

CADJPY

Driven by higher oil prices and bond yields, the loonie gained more demand over the yen in late December. Price crossed above resistance at 91.186, but it hasn't closed above. Also, two trend lines look noticeable on the 1D timeframe, and price has broken above one of them.

GBPJPY (Pound Yen)

Across the pond, pound pairs are in a similar boat as the dollar with the expectation of higher rates going forward. This factor is helping to drive price up closer to highs around 158.239. A trend line formed on the 4H where the pair has respected that level twice. Support lies around 156.000 and 154.746 just below.

To read more about GBP pairs, click here.

Hey everyone! Welcome to this week's forex forecast for the week ending December 10th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDCAD, EURAUD, GBPJPY & XAUUSD.

USD/CAD

Price is now consolidating at the resistance of the previous ascending triangle pattern at 1.283. Over the next week, lookout for a potential break of this level, this opens up price to levels such as 1.293 and 1.31. If price fails to break this level, it's likely it will continue acting as resistance and instead, we could see a bearish run back down towards 1.258.

EUR/AUD

Price is now just below a short-term key horizontal level 1.618 following the break of the ascending triangle and horizontal level 1.59. Over the next week, look out for a potential break above 1.618 which suggests a bullish run to follow, opening price up to 1.635 and potentially new higher highs.

GBP/JPY

Looking at G/J in the long-run, price is definitely failing to make a new trend and break yearly highs at around 156.0-158.0. Price is currently making its fourth recent touch of 149.0 and over the next couple of weeks, a break below this level suggests potential long-term bearishness towards 129.0. If price reverses and instead stays above, it's also potential we could still see new highs being made. This is a long-term view so would need to look over the chart for months.

XAU/USD

Gold is continuing to stay above the long-term level 1765 and no major moves were made over the past week. Price did reject 1800 which suggests we could be seeing potential bearish moves coming up. A break below 1765 opens up price to levels such as 1725 and 1675. If price continues to stay above 1765 over the next week, it's likely we could be seeing price coming up to retest previous levels such as 1800 and 1835.

Hey everyone! Welcome to this week's forex forecast for the week ending October 29th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDCHF, GBPUSD, GBPJPY & XAUUSD.

USD/CHF

Price broke out of the rising wedge pattern a couple of days ago, and price is already making its way to the downside to complete the chart pattern. Our first level of potential support is at 0.91, where we have seen in the past price has been struggling to break through; once we reach this level, look out for a break and retest before continuing the downwards ride on this pair.

GBP/USD

Price is currently near the top of this descending channel, and we're now waiting on a precise touch and rejection to continue the trend and head lower. For now, there aren't any other specific levels where we could see consolidation, but unless we see lots of bears selling early, it's possible financial institutions could manipulate price towards 1.40 to stop out early sellers.

GBP/JPY

Last week we saw price break through 156.0, the previous high in the long-term ascending channel, and we're now seeing price retrace and retest this key horizontal level. What we see next could decide where price will go next, whether we'll see price fall below it could suggest further bearishness, whereas if we see price instantly reject this, it's likely we could see further bullishness, and price could head towards the top of this channel much quicker.

XAU/USD

Gold continued to consolidate slightly between 1765 and 1800, and we saw price reach highs of around 1812 last week, but sellers quickly rejected this. For now, we're waiting on some significant catalysts to push price in a certain direction, as we just see back and forth moves for the time being.

Hey everyone! Welcome to this week's forex forecast for the week ending October 1st, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDJPY, GBPUSD, GBPNZD & XAUUSD.

USD/JPY

Price closed off for the week just above the resistance at 110.6 in this range bound market. Look out for how price reacts to this level, whether we see further bullish momentum continue pushing price higher, or if we see price retrace it's move and reject off the resistance, or if we see price fall back below the resistance and once again confirm the level as continued resistance as price heads back lower again, filling the gaps it's left behind.

GBP/USD

We saw price reverse off the daily order block at 1.361 and is showing signs of a retracement to that move. Look out for how price reacts to the same order block, and if it will act once again as an area to go long off. If we see price push below this will turn this zone into a breaker block, an area to go short off.

GBP/NZD

Price continuing to consolidate in the middle of this range between 1.92-1.97. Look out for a clear break outside the short-term key levels acting as support and resistance which are 1.935 and 1.955. If price breaks above 1.955 it's likely we'll see further movements towards the breaker block at 1.97 whereas if we see price break below 1.935 it's likely we'll see price push towards 1.92.

XAU/USD

Price is currently sitting inside the bullish order block and we're now waiting for a catalyst to push price outside the OB. If we see price continue going lower and break below the zone, this zone will become a breaker block, an area to go short from. Currently, in the short-term, we are seeing a descending channel form in the past couple of weeks, and hence unless price forms a new trend, a breaker block situation will be likely.

Hey everyone! Welcome to this week's forex forecast for the week ending September 24th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDJPY, EURUSD, GBPJPY & XAUUSD.

USD/JPY

Price has been consolidating between 109-111 over the past couple of months, and we recently saw price bounce off the range's support back to the middle of the consolidation zone. Look out for a clear break above or below this structure to catch the new trend, following subsequent retests and rejections.

EUR/USD

Huge moves rejecting the channel's top last week on E/U as price breaks below 1.18 and is now nearing the major key horizontal level 1.17. This level has been seen as major support over the past year or so, so look out for how price reacts to this level once we see price clearly enter. It's likely we could see the trend continue and price reaches the channel's bottom, before potentially retracing and making a move back towards 1.18.

GBP/JPY

Looking at the long-term trend on G/J price has recently touched and rejected off the previous high in this range at 156.0 and is now potentially making its move towards the downside. Currently, we have an ascending channel where price is actually at the bottom, and we're now waiting on clear confirmations whether price will break or respect this channel. If we see price break outside the channel, we'll likely see price continue the long-term trend and head towards the downside.

XAU/USD

Price is once again back at the bullish order block at 1740, where financial institutions will push price towards before a reversal to take out traders who went long early, most likely at 1765. If we see price break below this zone, this area will become a breaker block, an area to go short off following subsequent retests and rejections.

Hey everyone! Welcome to this week's forex forecast for the week ending September 3rd, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at NZDCHF, GBPJPY, GBPNZD & XAUUSD.

NZD/CHF

Price is now sitting at the descending channel's top and traders are likely waiting on confirmation of either a rejection for a reversal towards the bottom, or price to break out, retest and continue heading higher. There is mixed retail sentiment at the moment, with 57% traders short currently, it's likely we could see price head higher to stop out traders early.

GBP/JPY

Price is currently consolidating near the channel's bottom and traders are now waiting on confirmations where price could be heading next. A close below the bottom could signify price possibly heading lower, and if price continues to stay inside the channel it's likely we could see price head towards the top in the long run.

GBP/NZD

Price is looking like it's going to exit the bullish breaker block and possibly head back down towards the key horizontal level around 1.92. If price does make a clear close outside the block, then this could likely happen. If price continues to stay inside, we could potentially see price make the next high again, and going long from this zone wouldn't be a bad idea.

XAU/USD

Price is currently back inside the same zone we saw consolidation back in July between 1800 and 1835. A clear break above this level would suggest price is heading higher and if price does close below 1800, we could see price head back inside the channel again.

Hey everyone! Welcome to this week's forex forecast for the week ending August 13th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at GBPUSD, USDJPY, NZDCHF & XAUUSD.

GBP/USD

Price is currently consolidating around this 1.387 zone which was seen as resistance in mid-July and now as new support in early August. If price continues to hold, we'll likely see price head towards the trendline once more before we eventually see a break. However, a break below this zone suggests continued downside movement, and an entry following a retest with continued bearish confirmations would be ideal. Remember, we did recently see a break of the long-term ascending channel, and hence we could be forming a new long-term descending channel.

USD/JPY

Following the better-than-expected NFP news on Friday, we're seeing price potentially break out of this medium-term descending channel which was recently formed following the break of the long-term ascending channel. If price continues to stay above the channel's top, look out for a clear break, retest then enter with clear price action confirmations of a continued bullish move.

NZD/CHF

Similarly to U/J, price is at the top of this descending channel in the long-term bullish flag pattern. If price rejects this level and reverses towards the downside, a move to previous lows at 0.63 is expected, potentially 0.62 if we see further bearish confirmations. However, if we see price break out of this channel, we could likely begin to see price complete the flag pattern and head to new highs. An entry following a retest with continued bullish confirmations would be ideal at the channel's top.

XAU/USD

Following Friday's NFP event, where we saw a huge improvement in US jobs, price did in fact fall 2.2%. Price has again gone underneath the long-term channel's top and is hovering around a key horizontal level at 1765. If price uses this level as support, we could see price reach lows at the bullish order block at around 1740; however, if price breaks this zone, we could see it tumble towards the psychological 1700 level. We could likely see further downwards pressure as Fed tapering bets grow following this strong NFP report.

Check out my previous USDJPY deep dive here to see how we have progressed...

We saw price travelling in an ascending channel since the start of the year, however at the start of July we did see price failing to create the next high in the channel, and instead starting forming new lower highs and lower lows. We're now seeing price move in this new descending channel, head back to test previous highs.

109.2 is a good horizontal level to watch out for, and how price reacts around this level. A clear break below this level indicated price to continue heading lower to make the next touch of the channel. If price is failing to break through this level then we may see more touches of the channel's top, and potentially a new trend.

Looking at retail sentiment, we got quite a mixed retail sentiment, there isn't a clear sided winner as to how most traders are currently trading U/J.

Over the next week, we've got a few news events coming out, an important one being NFP, where the US will be printing their latest employment numbers, likely to show a slight increase at 870k vs 850k. The unemployment rate is projected to also dip from 5.9% to 5.7%. Keep in mind that the Fed is keeping a close eye on the labour market, waiting for more evidence of a strong jobs recovery before adjusting policy.

Wednesday's headline ISM and business activity index both blitzed expectations, while new orders, employment, and prices paid all gathered pace from the prior month to mark further if not yet the 'substantial' progress towards policy targets needed to start tapering. However, Clarida expects conditions for hikes to be met by the end of 2022, assuming inflation and jobs develop in line with his projections.

Some short-term considerations for the Dollar could cause some challenges for the mid-term downside bias. Right now, economists are expecting the US to average between 5.0% & 7.0% annualized GDP in 2021, which would be the most substantial rebound since 1984. At the same time, growth forecasts for the EU and China have been lowered, which means the relative growth differentials should be more supportive of the USD.

The additional boost in savings and additional fiscal support means the odds of upside surprises in US growth and inflation have grown. Thus, even though financial conditions, vaccine developments and relative growth and inflation bode well for some Dollar upside, the market’s main focus right now is on the Fed’s policy normalization path.

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