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
Bearish
USD/JPY
Bullish
Gold
Mixed
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
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.28% Silver: 0.26% Gold: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/La4HQtV3ur
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.68% 🇪🇺EUR: 0.48% 🇳🇿NZD: 0.26% 🇨🇦CAD: 0.18% 🇦🇺AUD: 0.11% 🇯🇵JPY: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/SoW8VDJZgA
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.32% France 40: 1.22% Wall Street: 0.55% US 500: 0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hXfpb9bT4W
  • Euro vs USD Forecast: EUR/USD Gears up to 1.1200 Handle – What’s Next? More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2019/12/13/Euro-vs-USD-Forecast-EURUSD-Gears-up-to-1.1200-Handle-Whats-Next-MK.html/?CHID=9&QPID=917714 https://t.co/DkAGBJlDTH
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/gfDv4QcaZ7
  • RT @JMahony_IG: 2019 vs 2017. Incredible to see the decimation of Labour votes in their traditional heartlands. https://t.co/jEDc3aNNkV
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/Ha25p32Ax2
  • 🇬🇧 GBP BoE/TNS Inflation Next 12 Mths (NOV), Actual: 3.1% Expected: N/A Previous: 3.3% https://www.dailyfx.com/economic-calendar#2019-12-13
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT as he goes over London #FX & #CFD charts for the next week. Register here: https://t.co/CoMkMA0pdF https://t.co/vvSaRzqnyk
  • USD/CHF IG Client Sentiment: Our data shows traders are now at their most net-long USD/CHF since Jun 26 when USD/CHF traded near 0.98. A contrarian view of crowd sentiment points to USD/CHF weakness. https://www.dailyfx.com/sentiment https://t.co/luvd6aOalw
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.