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
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.19%, while traders in France 40 are at opposite extremes with 69.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EqA6PJH4Yt
  • 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/XCHxCSz9XZ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.29% 🇳🇿NZD: 0.22% 🇬🇧GBP: 0.18% 🇪🇺EUR: 0.11% 🇨🇭CHF: 0.10% 🇦🇺AUD: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5W5WVMPcrH
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.00% FTSE 100: -0.10% US 500: -0.13% France 40: -0.15% Germany 30: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/p1qqTNx2Mz
  • RT @KyleR_IG: A history of US fiscal and monetary stimulus and the US 10 year yield: more stimulus, higher rates. When it comes to QE, mor…
  • 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/DfG4YuKM4U
  • Wall Street Futures Update: Dow Jones (+0.03%) S&P 500 (-0.11%) Nasdaq 100 (-0.28%) [delayed] -BBG
  • Volatility follows the FOMC's slow approach to its second taper, but neither the Dollar nor the S&P 500 have held their charge. With US GDP ahead, expect the echoes of the central bank's warnings and watch $EURUSD and $USDCAD https://www.dailyfx.com/forex/video/daily_news_report/2021/07/29/EURUSD-Slow-Trigger-Reversal-and-USDCAD-Yet-to-Detonate-After-Fed-Before-US-GDP.html https://t.co/BCUTSX0WNY
  • China to continue allowing Chinese companies to IPO in US exchanges - CNBC via BBG
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.85% Gold: 0.46% Oil - US Crude: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/9QGWRaUfmI
Attractive Levels for GBPUSD Bulls

Attractive Levels for GBPUSD Bulls

Justin McQueen, Analyst

GBPUSD Analysis and News

  • GBP bulls may find value at these cheap levels
  • Tomorrows Employment report to dictate near-term direction

See how retail traders are positioning in GBPUSD as well as other major FX pairs on an intraday basis using the DailyFX speculative positioning data on the sentiment page.

Attractive Levels for Long Term GBP Bulls

Over the past month GBP has plunged from post-Brexit highs (1.4377) to the mid-1.34s as the BoE deferred from raising rates in May after a raft of soft data, while the recovery in the USD-index also weighed. However, following the recent pounding, long term GBP bulls may find tactical upside at these relatively cheap levels.

Data Dependent GBP

Last week, the Bank of England signaled that a rate hike in 2018 remains appropriate, subsequently this has heightened the degree of data dependency for GBP. As such, tomorrows employment report will be key for near-term direction, as is usually the case, focus will be on the wage components, whereby the average earnings ex-bonus is expected to tick up to 2.9% from 2.8%, employment growth is seen at a healthy 130k. A robust employment report with better than expected wage data will begin to reignite expectations for an August rate hike which currently stands at a rather low 40%, subsequently a strong labour report could be supportive for GBP longs. Link to live data coverage of tomorrows UK Employment report, click here

Attractive Levels for GBPUSD Bulls

Source: Thomson Reuters

USD Recovery Running Out of Steam

Elsewhere, strength in the US Dollar is losing its momentum given that its rapid rise is running the risk of a near-term pullback. Last week’s CPI disappointment provided the first warning of this as it reigned in expectations for 3 more rate hikes this year, particularly as it follows from the recent FOMC meeting as members signaled that it will not over-react to an inflation overshoot. In turn, the continued easing of the USD gains will likely support GBP in the short, which could be looking to target above 1.3700.

For a more in-depth analysis on Sterling, check out the Q2 Forecast for GBP/USD

GBP/USD CHART: 1-HOUR TIME FRAME (September 2017-May 2018)

Attractive Levels for GBPUSD Bulls

Chart by IG

GBPUSD Technical Levels

Support: 1.3500, 1.3490 (50% Fibonacci Retracement of 1.2603-1.4377 rise) 1.3458 (January 11th low)

Resistance: 1.3596 (Friday’s high), 1.3655 (2017 high), 1.3717 (March 1st low)

RSI indicator pulls out of oversold territory and suggesting a lift higher is on the horizon.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES