After our analysis for March of the FTSE 100, it is time to take a look at the GBP pairs.
GBP/USD for March 2021
In February we expected rises for the GBP/USD, and we were right to a certain degree. We proposed a trade with the stop-loss at 1.3340 and 1.42 as an objective. Happily, it worked perfectly.
First, we had a fright because the price went down to 1.3568; but since our stop-loss was lower, we stuck to the trade, and we have our reward. On February 24, the price went beyond our objective of 1.42 to be slightly above 1.4230. However, it happened intraday, so only those that track the movement closely could benefit from it.
After that, the price went down. It was not something really surprising, since as we said in our post, the long-term trend is clearly bearish.
We think falls will continue, but it is time to let the market evolve and not take any trade since it would be very difficult to set a stop-loss for a short position in the short term.
We expect the price to take a rest from the falls at some point allowing us to analyse it again.
This article was written when the GBP/USD was at 1.3800 on March 5.
EUR/GBP for March 2021
In our analysis for February, we said the EUR/GBP seemed to be going down, and that is exactly what happened. Actually, we set the next support between 0.8736 and 0.8660, and the prices had gone beyond that to a minimum of 0.8541 on February 24. Now, it seems to be consolidating between 0.8732 and 0.8541. Remember the theory that says that old supports become resistances? Well, we pointed 0.8736 as the support, and now it seems to be forming the resistance.
Our forecast is the price will go down; but on February 24, the price was hardly oversold, and the rebound may not have ended. Therefore, in the next trade we will use the closest resistance.
In the long-term we expect the EUR/GBP to go close to 0.84. We could try our luck with a trade with a stop-loss at 0.8736 and objective at 0.8410. This trade means a potential loss of around 1 percent and a potential profit of around 1.7 percent.
GBP/USD for March 2021
In February we expected rises for the GBP/USD, and we were right to a certain degree. We proposed a trade with the stop-loss at 1.3340 and 1.42 as an objective. Happily, it worked perfectly.
First, we had a fright because the price went down to 1.3568; but since our stop-loss was lower, we stuck to the trade, and we have our reward. On February 24, the price went beyond our objective of 1.42 to be slightly above 1.4230. However, it happened intraday, so only those that track the movement closely could benefit from it.
After that, the price went down. It was not something really surprising, since as we said in our post, the long-term trend is clearly bearish.
We think falls will continue, but it is time to let the market evolve and not take any trade since it would be very difficult to set a stop-loss for a short position in the short term.
We expect the price to take a rest from the falls at some point allowing us to analyse it again.
This article was written when the GBP/USD was at 1.3800 on March 5.
EUR/GBP for March 2021
In our analysis for February, we said the EUR/GBP seemed to be going down, and that is exactly what happened. Actually, we set the next support between 0.8736 and 0.8660, and the prices had gone beyond that to a minimum of 0.8541 on February 24. Now, it seems to be consolidating between 0.8732 and 0.8541. Remember the theory that says that old supports become resistances? Well, we pointed 0.8736 as the support, and now it seems to be forming the resistance.
Our forecast is the price will go down; but on February 24, the price was hardly oversold, and the rebound may not have ended. Therefore, in the next trade we will use the closest resistance.
In the long-term we expect the EUR/GBP to go close to 0.84. We could try our luck with a trade with a stop-loss at 0.8736 and objective at 0.8410. This trade means a potential loss of around 1 percent and a potential profit of around 1.7 percent.
This article was written when the EUR/GBP was at 0.8651 on March 5.
Remember that when trading with currencies, you do not need a medallion guarantee.
We do not give financial advice, and this blog post is only for entertainment purposes.
For more information on the Stock Market in March contact us today.