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
GBP/USD
Bearish
Low
High
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
More View more
Real Time News
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/FFMy5O9YoY
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
GBPUSD Preserves Broad Range- Has Pound Carved a Top Ahead of BoE?

GBPUSD Preserves Broad Range- Has Pound Carved a Top Ahead of BoE?

David Song, Strategist
Forex_GBPUSD_Preserves_Broad_Range-_Has_Pound_Carved_a_Top_Ahead_of_BoE_body_ScreenShot005.jpg, GBPUSD Preserves Broad Range- Has Pound Carved a Top Ahead of BoE?

GBPUSD Preserves Broad Range- Has Pound Carved a Top Ahead of BoE?

Fundamental Forecast for the British Pound: Neutral

The British Pound fell back from a fresh monthly high of 1.5716 even as the preliminary 2Q GDP report showed an upward revision in the U.K. growth rate, and the GBPUSD may continue to consolidate in the week ahead as the pair appears to be carving a top in August. Although the economic docket is expected to show a further improvement in U.K. consumer confidence along with a pickup in private sector credit, Bank of England (BoE) Deputy Governor Charles Bean argued that there’s ‘a long way’ before the central bank starts to tighten monetary policy, and went onto say that the Monetary Policy Committee (MPC) may further embark on quantitative easing as the rise in U.K. yields raises the risk for a protracted recovery.

With BoE Governor Mark Carney scheduled to speak next week, the fresh batch of central bank rhetoric may heavily impact the British Pound ahead of the September 5 meeting, and the sterling may face a larger correction should the central bank head show a greater willingness to expand the balance sheet further. Indeed, Mr. Carney may continue to strike a rather dovish tone for monetary policy amid the persistent slack in the real economy, and the sterling may trade within a broad range over the near to medium-term as the policy outlook remains clouded with high uncertainty.

However, as the MPC anticipates a more broad-based recovery in the second-half of the year, prospects for stronger growth may keep inflation above the 2% target for an extended period of time, and the ‘knock out’ for forward guidance may shore up the sterling on a longer-term scale as it raises the scope of seeing the BoE implement its exit strategy ahead of schedule. Nevertheless, the rally in the GBPUSD could be coming to an end as the pair marks a failed run at the June high (1.5750), and the sterling may trade within a broad range over the near to medium-term as market participants weigh the outlook for monetary policy.

The GBPUSD may face a larger correction next week as the pair failed to mark a close above the 38.2% Fibonacci retracement of the 2009 range, and we may see a move back towards the 61.8% Fib expansion (1.5480-90) as the pound-dollar continues to search for support. However, should the key figure fail to provide a floor for the GBPUSD, a further decline in the exchange rate may threaten the upward trending channel carried over from July, and the sterling may ultimately give back the rebound from 1.4812 should the BoE show a greater willingness to retain its highly accommodative policy stance for an extended period of time. - DS

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

DISCLOSURES