We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Wall Street
More View more
Real Time News
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: 0.64% Silver: 0.13% Oil - US Crude: -1.76% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ERG8JOGxZf
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: France 40: -0.23% Wall Street: -0.31% US 500: -0.36% Germany 30: -0.54% FTSE 100: -0.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JEODi73ZcM
  • Finland's government states that is rejects EC proposal for recovery package as it now stands and demands change $EUR
  • GBP/USD is easing back Thursday after a week of gains as the June 30 deadline for the UK to ask for an extension of its Brexit transition period approaches. Get your $GBPUSD market update from @MartinSEssex here:https://t.co/ymQqurP9Nw https://t.co/pmPrbAgrC6
  • One for the ECB minutes to provide clarity - Lagarde says there was "broad" consensus over EUR 600bln boost in PEPP
  • In reaction to the larger than expected stimulus package, the Euro jumped to fresh highs of 1.1270 from 1.1200.Get your $EURUSD market update from @JMcQueenFX here:https://t.co/JdjmStjKwa https://t.co/aOdPDrpvNM
  • #LAGARDE sobre el tribunal de justicia alemán: El #BCE está bajo jurisdicción de la corte de justicia europea y tenemos fe en que se encuentre una solución adecuada que no hiera los intereses del BCE ni de los otros implicados $EUR
  • ECB says they have not discussed adding corporate junk bonds to PEPP $EUR
  • ECB Inflation forecasts (Baseline) - 2020 (0.3%) - 2021 (0.8%) - 2022 (1.3%)
GBPUSD Downtrend Set to Continue

GBPUSD Downtrend Set to Continue

2018-04-26 15:45:00
Martin Essex, MSTA, Analyst

GBPUSD talking points:

- After touching a 2018 high of 1.4377 on April 17, GBPUSD has dropped back below the psychologically significant 1.40 level.

- Now those losses look set to be extended, with the February and March lows the initial targets.

Check out the IG Client Sentiment data to help you trade profitably.

And for a longer-term outlook download our Q2 forecast for GBP.

GBPUSD losses to persist

The outlook for GBPUSD is looking increasingly bleak after a drop from April 17’s 2018 high of 1.4377 to the current levels just below the 1.40 mark. Already under both the 20-day and 50-day moving averages, the pair has now fallen beneath the 100-day moving average too – confirming that the trend is now downwards.

The rot really began when the trendline that had supported GBPUSD for most of last month was broken on March 29. It then acted as resistance and after several attempts at an upside break the price fell sharply on April 18 and has continued to drop since.

GBPUSD Price Chart, Daily Timeframe (Year to Date)

Latest GBPUSD daily price chart

Chart by IG

Now the focus is on several important support levels, which are essentially the next medium-term targets. First up is the February 9 low at 1.3764, followed by the March 1 low at 1.3712. The long-term rising trendline that has supported the pair since March 14 last year is currently around the same level, at 1.3717, and below that lies the high from September 20 last year, at 1.3659.

Note too that while the 14-day relative strength index is approaching the 30 mark, that would indicate the market is oversold, it is not there yet.

Turning to the weekly chart below, note that last week was a key reversal week. GBPUSD hit a new high for the uptrend but closed under the previous week’s low – another bearish signal.

GBPUSD Price Chart, Weekly Timeframe (May 2016 to Date)

Latest GBPUSD weekly price chart

Chart by IG

To the upside, the key risk to this scenario would be a rally back to the April 17 high at 1.4377, signaling a resumption of the uptrend.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.