News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
  • Kansas City Fed President Esther George says: - The labor market friction is fading barring a resurgence of virus - A 'normal' economy is likely to remain elusive for some time - Asset buying effects complicate the judging rate change plan
  • The risk rally that charged the S&P 500 and brethren post-FOMC has stalled into Friday's open. DailyFX's @JohnKicklighter discusses what is driving markets post Fed👇 https://t.co/qNuVaDrZPe
  • 🇺🇸 New Home Sales MoM (AUG) Actual: 1.5% Previous: 6.4% https://www.dailyfx.com/economic-calendar#2021-09-24
  • China has announced that they will be cracking down on Cryptocurrency mining and while this has been a reoccurring theme, regardless of that fact Get your market update from @JMcQueenFX here:https://t.co/FluWtTTM93 https://t.co/GnBLLucMs3
  • Looks like they couldn't hold the 8.8000 line for $USDTRY. Record high exchange rate (favoring Dollar over Turkish Lira) despite a still-17.75 percentage point differential in their benchmark rates... https://t.co/7FrlF8El1O
GBP/USD Slide Continues as Carney Hints at Future Easing

GBP/USD Slide Continues as Carney Hints at Future Easing

Walker England, Forex Trading Instructor

Talking Points

  • GBP/USD Breaks Lower as BOE Cuts Key Rates by 25 Basis Points
  • GBP/USD Retracements May Begin Over 1.3148
  • What’s next for the GBP/USD and US Dollar Pairs? Learn more with our Trading Guide

The British Pound has declined significantly this morning as the Bank of England has elected to cut key interest rates to 0.25% Bank of England Governor Carney has also not discounted further easing measures, and stated “We took these steps because the economic outlook changed markedly’.” This news coupled with a series of dovish statements has caused the GBP/USD to slide below the key 1.3200 support value. Prices are now trading at the lows of the day, leaving traders to consider if this downtrend may continue.

GBP/USD, 15 Minute Chart & breakout

GBP/USD Slide Continues as Carney Hints at Future Easing

(Created by Walker England)

In the 5-minute graph below, the GBP/USD can be seen trading off of the lows of the day at 1.310. Despite this small bounce in price, the Grid Sight Index (GSI) has highlighted a new short-term downtrend with a series of lower lows printed in the last hour. After reviewing 99,866,403 pricing points, GSI has indicated that price action has continued to decline by 12 pips or more in 55% of the 295 matching historical events. This places today’s first bearish distribution at a price of 1.3111.

Alternatively, GSI has indicated a 25-pip advance in just 8% of the 295 historical matches. Traders looking for a reversal of today’s breakout should watch for the GBP/USD to trade through 1.3148. A move through this value would show a significant change in the markets current downward momentum.

Want to learn more about GSI? Get started learning about the Index HERE.

GBP/USD Slide Continues as Carney Hints at Future Easing

Sentiment for the GBP/USD stands short of extremes even after this morning’s decline. SSI (speculative sentiment index) is currently reading at +1.48. With 60 percent of positioning long, this may suggest that the GBP/USD may continue to trade lower. In the event that the GBP/USD breaks lower tomorrow, traders should look for SSI to read at a positive extreme of +2.00 or more. Alternatively, if a bullish reversal occurs, traders should look for SSI to move back from extremes towards a more neutral value.

GBP/USD Slide Continues as Carney Hints at Future Easing

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

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

DISCLOSURES