As U.S. Economic Data Shows Weakness, Make This 1 Trade Now

As U.S. Economic Data Shows Weakness, Make This 1 Trade Now

Thu, August 27, 2026 at 5:19 PM GMT+3 2 min read

• GBP=X +0.41%
• DX-Y.NYB +0.52%

December British pound (B6Z26) futures present a buying opportunity on more price strength.

See on the daily bar chart for the December British pound futures that prices are in an uptrend and have recently hit a six-month high. Pound bulls have the near-term technical advantage as "the trend is their friend."

More News from Barchart

Fundamentally, the U.K. economy is on sound footing despite higher energy prices. The Bank of England is also prudently keeping its monetary policy on hold. Meantime, the U.S. dollar index ($DXY) has been trending down as recent U.S. economic data has shown some weakness.

A move in the December pound futures above chart resistance at 1.3600 would become a buying opportunity. The upside price objective would be 1.3825 or above. Technical support, for which to place a protective sell stop just below, is located at 1.3500.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com