A1 Trading Company

Ticker tape by TradingView

January 31, 2021

Weekly Forex Forecast for GBPUSD, GBPCHF, GBPJPY, XAUUSD (31-05 February 2021)

Bart Kurek

Hey everyone! Welcome to this week's forex forecast for the week ending February 5th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at GBPUSD, GBPCHF, GBPJPY & XAUUSD.

GBP/USD

Looking at the overall trend in this market, we've got the long-term ascending channel, where price has been steadily increasing forming HH's and HL's for almost a year now, ever since the initial Covid-19 drop back in March 2020. Zooming in closer on the H4 timeframe, we've got the rising wedge pattern formed, and price is now reaching the apex point signifying a breakout coming up. In confluence with this, we've also got a strong Bullish OB held at 1.348 which is also attracting price to head downwards to collect trade orders before potentially bouncing off the channel's bottom and rising once again.

GBP/CHF

Overall we've got a choppy market here, consolidating between the 1.22 and 1.16 zones. I think it's about ready to break out now, as many confluences are lining up to suggest so. Firstly we've got the large Liquidity Pool (LP) area formed on the Weekly TF, attracting price towards this zone. Secondly, the resistance level at 1.22 is where most retailers would be selling, as it's seen as strong resistance and unlikely to break above. However, with all the liquidity above, banks are likely to push price higher to hit sellers stop-losses.

GBP/JPY

Overall, we've got the ascending channel formed just like on GBPUSD where price has been steadily increasing after the initial crash caused by Covid-19. We've got the rising wedge pattern showing on the short-term time frames, and a substantially large bearish OB formed shown on the Weekly TF. We've also got retailers seeing resistance at 142.5, so most are likely to be selling at the moment. Price is moving exactly how I'm expecting it to, breaking above higher to catch out retailers and take out their stop losses, collecting orders from the OB displayed and now I'm expecting a huge downfall on this pair up to the channel's bottom.

XAU/USD

Overall, I have been pointing out this bullish flag pattern where price fails to break above the channel's top to complete the pattern. I expect a short-term bearish move to collect orders at the Daily Bullish OB displayed in the chart shown by the curved arrow. Price should be collecting orders at this level before making a reversal and completing the flag pattern on this pair. I find it unlikely that price will reverse at the H4 Bull-OB displayed on the chart because it's seen a retailer's support however it is possible, so it's essential to look out for price action confirmations before taking any positions.

WANT TO SEE OUR ANALYSTS LIVE TRADES?

JOIN OUR PREMIUM GROUP TO ACCESS:

  • Trade alerts from our analysts
  • The VIP chatroom with traders worldwide
  • Training material exclusive to members

DISCLAIMER

COMMENTS BY TRADERBART ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY. I AM NOT A FINANCIAL ADVISOR AND ALL COMMENTS SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE REGARDING THE PURCHASE OR SALE OF ANY FINANCIAL INSTRUMENT OF ANY KIND. PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR BEFORE MAKING AN INVESTMENT DECISION REGARDING ANY FINANCIAL INSTRUMENTS MENTIONED BY TRADERBART. BY COMMITTING TO ANY IDEAS SHOWN BY TRADERBART, YOU ASSUME FULL RESPONSIBILITY FOR YOUR TRADING AND INVESTMENT RESULTS. TRADING OF ANY TYPE INVOLVES VERY HIGH RISK AND MAY NOT BE SUITABLE FOR ALL INVESTORS.

A1 Edgefinder

Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.

10% off code: 'READER'

GET ACCESS NOW

VIP discord

Trade Alerts, Strategies, Chatrooms & more!

10% off code: 'READER'

LEARN MORE
What To Expect From Today's FOMC

Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]

Read More
The Art of Not Trading

With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]

Read More
Best Currency to Buy?

As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram