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
EUR/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
GBP/USD
Mixed
USD/JPY
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
Gold
Bullish
Oil - US Crude
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
Bitcoin
Bullish
More View more
Real Time News
  • The #Euro is grinding through support guiding the four-month upswing against the US Dollar, hinting that resumption of the broader downtrend may be around the corner. Get your market update from @IlyaSpivak here: https://t.co/lHhewnDqCf https://t.co/knIYvGF2cr
  • EUR/USD Technical Analysis: Euro Downtrend May Have Restarted - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/01/24/EURUSD-Technical-Analysis-Euro-Downtrend-May-Have-Restarted.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #EURUSD #technicalanalysis https://t.co/AbwUdLh4mt
  • The Japanese Yen has faded into 2020 as market risk appetite has held up and hit demand for haven assets. $USDJPY now challenges a key medium-term downtrend, but hasn’t topped it yet.Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/tkgAOlDdtU
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.06% Gold: -0.10% Silver: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LwLCxnO6eM
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.06% 🇯🇵JPY: 0.03% 🇬🇧GBP: -0.00% 🇨🇦CAD: -0.01% 🇪🇺EUR: -0.03% 🇨🇭CHF: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/UT2Vl3reju
  • The US Dollar rose as the Singapore Dollar, Malaysian Ringgit and Philippine Peso fell on #Coronavirus fears. What is the technical outlook for $USDIDR, $USDSGD, $USDMYR and $USDPHP? #ASEAN - https://www.dailyfx.com/forex/technical/article/special_report/2020/01/24/USDIDR-USDSGD-USDMYR-USDPHP-Coronavirus-Impact-on-Trends.html?CHID=9&QPID=917702 https://t.co/hCnmsObRuS
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.22%, while traders in US 500 are at opposite extremes with 76.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/x0bKaNAhmU
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here:https://t.co/SZAG0yMu3d https://t.co/CY7vQwuEL1
  • So far this week, #GBP has been the best-performing #G10 currency against #USD with +0.78% spot-returns while #NOK has been the worst with -0.96% [delayed]
  • 🇳🇿 NZD Credit Card Spending (YoY) (DEC), Actual: 3.4% Expected: N/A Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-01-24
GBP Fundamental Forecast: Bulls Taking Control of Sterling

GBP Fundamental Forecast: Bulls Taking Control of Sterling

2019-01-19 06:00:00
Nick Cawley, Analyst
Share:
GBP

Sterling (GBP) Talking Points:

  • Important week ahead may keep Sterling in check.
  • A Soft Brexit or no Brexit at all are now being priced into Sterling.

The DailyFX Q1GBP Forecasts are available to download including our short- and medium-term look at Sterling.

Fundamental Forecast for GBP: Neutral

A very, very close call not to change our Sterling forecast to bullish this week after market sentiment took a marked shift towards a Soft Brexit or no Brexit at all, both GBP positive. On Tuesday PM May’s Brexit bill took a hammering in the HoC with the PM losing the vote by a record margin of 230 votes although the PM did win the subsequent no confidence vote, mainly due to the DUP vote. As a result, PM May must present her plan B to Parliament on Monday, a bill that is likely to look like Plan A. This plan B will be debated all next week. While the option of a No Deal Brexit is now highly unlikely, the PM has yet to say this and is unlikely to ahead of any further discussions with the EU.

Sterling (GBP) Price: Brexit Vote Impact on GBPUSD and EURGBP

Brexit Roundtable Webinar: Outlook for Sterling and Other UK Asset Classes

Sterling took this week’s votes to heart and began re-pricing all GBP-crosses pushing them higher. These moves also made Sterling technical set-ups look more positive, providing another uplift. While I think that Sterling will continue to make weekly gains, next week may well throw out negative headlines which will dampen any rally, although losses should be limited and contained within recent trading ranges. From a technical point of view, sell-offs should now be viewed as potential buying opportunities.

It is likely that we have already made the lows in most if not all Sterling crosses, although the last 2+ years has taught us that nothing can be taken for granted where Brexit is involved. Remain patient and disciplined when looking for entry points.

GBPUSD Daily Price Chart (May 2018 – January 18, 2019)

GBPUSD

IG Client Sentiment data show 52.0% of traders are net-long GBPUSD. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests that GBPUSD prices may continue to fall. However, the combination of recent daily and weekly positional changes gives us a mixed trading bias.

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

Other Weekly Fundamental Forecast:

Australian Dollar Forecast – Slowing China GDP to Curb AUD/USD Flash-Crash Rebound

Oil Forecast – Can Crude Oil Prices Keep Rising as China Slows? Brexit, ECB Eyed

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

DISCLOSURES

News & Analysis at your fingertips.