Skip to Content
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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
GBP/USD Rate Reversal May Accelerate as NZD/USD Price Rises

GBP/USD Rate Reversal May Accelerate as NZD/USD Price Rises

Daniel Dubrovsky, Contributing Senior Strategist


What's on this page

Asia Pacific Market Open Talking Points

Forex for Beginners
Forex for Beginners
Recommended by Daniel Dubrovsky
Forex for Beginners
Get My Guide

British Pound Slides as New Zealand Dollar Gains

The British Pound was the worst-performing major currency on Thursday, extending declines in the aftermath of last week’s UK general election. Losses accelerated once yesterday’s Bank of England rate decision crossed the wires, allowing the fundamental risk of no-deal Brexit to reinstate itself for GBP. The central bank left rates unchanged, though downgrading 4Q GDP estimates as CPI is expected to slow ahead.

On the flip side of the table, the sentiment-linked Australian Dollar and New Zealand Dollar had a fairly rosy session. The former was propped up by better-than-expected local employment data in addition to the “risk-on” tone from US stock exchanges. The S&P 500 and Dow Jones ended the day 0.45 percent and 0.49% to the upside respectively.

Investors have had near-term reason to chase returns in equities following the “phase one” US-China trade agreement. This has also fueled gains in sentiment-linked crude oil prices on what could be an improving outlook for global growth. The haven-linked US Dollar aimed cautiously lower as traders’ need for preserving capital and prioritizing liquidity was diminished.

Friday’s Asia Pacific Trading Session

Asia Pacific benchmark stock indexes may follow Wall Street higher as the week wraps up, pressuring the anti-risk Japanese Yen. This may bode well for the sentiment-linked AUD and NZD. The New Zealand Dollar may rise on local credit card spending for November. Data out of the country has been tending to increasingly outperform relative to expectations as of late, opening the door to continuation ahead.

British Pound Technical Analysis

The British Pound may be reversing its dominant uptrend from September after GBP/USD confirmed an Evening Star. This is a bearish candlestick pattern. Prices have also taken out near-term rising support from October. That may push the currency pair towards November lows with 1.2950 standing in the way as immediate support. Simultaneously, an uptick in net long positioning may add fuel to GBP’s descent.

GBP/USD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 12% -18% 2%
Weekly 20% -24% 4%
Learn how to use sentiment in your trading strategy
Get My Guide

Chart of the Day – GBP/USD

Chart of the Day GBP/USD

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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