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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
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
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
GBP/USD Rate Eyes Fresh 2018-Lows as Bearish Series Takes Shape

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

David Song, Strategist

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