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
Bullish
GBP/USD
Mixed
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
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
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
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.68%, while traders in France 40 are at opposite extremes with 80.94%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/CFFN6tgMXb
  • #GBPUSD Testing Five-Year Resistance: Breakout Ahead? https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2019/10/18/GBPUSD-Testing-Five-Year-Resistance-Breakout-Ahead.html
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.42% 🇦🇺AUD: 0.12% 🇯🇵JPY: 0.10% 🇪🇺EUR: 0.03% 🇨🇦CAD: 0.00% 🇬🇧GBP: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/i1K0L7cDfA
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.09% US 500: -0.13% France 40: -0.31% Germany 30: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ly8aOm0jV8
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/taFcP1Ge44
  • RT @markets: Reserve Bank watchers consider the options for Australian QE and how it would impact markets https://t.co/9gYZgZXeE5
  • The $USD may extend its climb versus the Indian Rupee, but can it overturn weakness against the Singapore Dollar? $USDIDR and $USDPHP attempt breaking above resistance once more. Get your market update from @ddubrovskyFX here: https://t.co/bCb8Ddcsa5 https://t.co/39mmYjC8Tb
  • What should we expect through the final trading session of the week? I made a video on it: '$EURUSD Faces Its Own #TradeWar, Mind Your #Brexit Risk and China 3Q GDP' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/18/EURUSD-Faces-Its-Own-Trade-War-Mind-Your-Brexit-Risk-and-China-3Q-GDP.html?utm_source=Twitter&utm_medium=Kicklighter&utm_campaign=twr
  • #GBP, #SEK and #NOK are expected to be the most-active G10 majors versus #USD with one-week implied volatility at 13.02, 8.18 and 7.85 respectively
  • If you missed my LIVE coverage of #China 3Q GDP where I talked about $AUDUSD, $AUDJPY, $GBPAUD and $AUDNZD, check out the recording in the link below! - https://t.co/QJwfSc5HJM
GBP/USD Rate Eyes Fresh 2018-Lows as Bearish Series Takes Shape

GBP/USD Rate Eyes Fresh 2018-Lows as Bearish Series Takes Shape

2018-08-06 21:00:00
David Song, Currency Strategist
Share:

British Pound Talking Points

The British Pound extends the decline following the Bank of England (BoE) meeting, with GBP/USD at risk of exhibiting a more bearish behavior over the days ahead as it carves a series of lower highs & lows.

Image of daily change for major currencies

GBP/USD Rate Eyes Fresh 2018-Lows as Bearish Series Takes Shape

Image of daily change for gbpusd

Renewed fears surrounding Brexit appears to be weighing on the British Pound as Bank of England (BoE) Governor Mark Carney warns an undesired scenario may ultimately require a rate-cut in the U.K., and the central bank may move to the sidelines after delivering a 25bp hike earlier this month as ‘the economic outlook could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of EU withdrawal.

Image of boe meeting details

Keep in mind, the recent comments from the Monetary Policy Committee (MPC) suggests Governor Carney & Co. will further embark on its hiking-cycle as ‘an ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to the 2% target at a conventional horizon,’ but it seems as though the central bank will merely attempt to buy more time at the next meeting on September 13 as ‘any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent.

As a result, concerns surrounding Prime Minister Theresa May’s leadership may continue to drag on GBP/USD as it clouds the outlook for monetary policy, and the pound-dollar exchange rate stands at risk of extending the series of lower highs & lows from earlier this week as the bearish momentum appears to be gathering pace.

GBP/USD Daily Chart

Image of gbpusd daily chart
  • The break of the July-low (1.2956) paired with the closing price below the 1.2950 (23.6% expansion) hurdle brings the downside targets on the radar, with the next region of interest coming in around the 1.2800 (50% expansion) handle followed by the Fibonacci overlap around 1.2630 (38.2% expansion) to 1.2640 (23.6% retracement).
  • Keeping a close eye on the Relative Strength Index (RSI) as the oscillator appears to be snapping the uptrend trend from June, with a break of trendline support raising the risk for a further decline in the exchange rate as the momentum indicator comes up against oversold territory.

For more in-depth analysis, check out the Q3 Forecast for the British Pound

Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

Image of DailyFX economic calendar

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES

News & Analysis at your fingertips.