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.

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
Mixed
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
Mixed
GBP/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
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
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
  • We ended this past week with another cliffhanger. The $SPX teeters on the edge of a breakdown from the post-pandemic recovery. While we have NFPs and other key data ahead, the markets are likely to remain fixated on yields. My outlook for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/02/27/SP-500-Dollar-Reversal-Hinge-Not-On-NFPs-but-Markets-Risk-Imagination.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/mlNDDyTgex
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/70ZOJ0ZMwF
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Evr5KgUjVo
GBPUSD Forecast: Sterling Sell-Off Nears Critical Support

GBPUSD Forecast: Sterling Sell-Off Nears Critical Support

Nick Cawley, Strategist

GBPUSD Prices, News and Analysis

  • Fibonacci retracement may support GBPUSD in the short-term.
  • Brexit risks remain as EU Withdrawal Bill vote nears.
  • US dollar probing fresh multi-month highs.

IG Client Sentiment data show that retail traders are long of GBPUSD and have remained long of the pair since April 20 when GBPUSD traded around 1.42300.

GBPUSD - Fundamentals and Technicals

GBPUSD continues to probe the downside on a combination of renewed US dollar strength - despite the escalation of the US-China trade dispute - and a continued Brexit stalemate. This combination has seen the pair drop 12 big figures from the 1.43768 high made just over two months ago. Brexit talks will be in the spotlight today as the House of Commons votes on amendments made to the EU Withdrawal bill with the outcome balanced. A defeat for the UK government, while not terminal, will weaken their bargaining position with the EU as trade talks approach.

US Dollar Basket Touching Multi-Month Highs

GBPUSD Forecast: Sterling Sell-Off Nears Critical Support

GBPUSD and the Likely Path Lower

The daily chart shows that the pair are approaching a couple of important support levels, which if broken could see GBPUSD drop below 1.28000. The 50% Fibonacci retracement of the 1.1800 – 1.43768 rally is set at 1.30884 and may provide early support for the pair ahead of the October 5 low at 1.30272. If neither of these levels hold, a fall back to the 61.8% Fibonacci retracement level at 1.27843 becomes more likely. GBPUSD remains negative, trading below all three moving averages, but the RSI indicator is now in oversold territory and may provide short-term support. There is a strong resistance on the upside between 1.33018 and 1.34581 which would need a fundamental shift in sentiment before GBPUSD trades higher.

GBPUSD Daily Price Chart (October 2017 - June 20, 2018)

GBPUSD Forecast: Sterling Sell-Off Nears Critical Support

DailyFX has a vast amount of updated resources to help traders make more informed decisions. These include a fully updated Economic Calendar, and a raft of Educational and Trading Guides

--- Written by Nick Cawley, Analyst

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

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES