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
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/wbf3Lwe5Qt
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/2B8CdSgkuq
  • The Aussie sell-off halted at key lateral support this week and puts the focus on a break of this key range. Here are the levels that matter on the AUD/USD weekly chart. Get your $AUDUSD technical analysis from @MBForex here: https://t.co/rU4u1tMlmz https://t.co/QbyxUrDq1a
  • The $JPY market faces a clear disconnect between domestic economic data and monetary policy. What if that were to change? Get your market update from @DavidCottleFX here:https://t.co/4Gr8tLaHvj https://t.co/0eXMv5CTnd
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
  • Poll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/Ft0ExAmMpq
  • #Dow Jones hits record high, however, central bank liquidity prompts volatility implosion. #FTSE 100 among underperformers with focus remaining on politics. Get your #equities market update from @JMcQueenFX here: https://t.co/EOFleGSeBp https://t.co/ecAyfSUeAM
  • RT @C_Barraud: 🇪🇺 #ECB’s Muller Says More Assets Could Join Stimulus List in Slump - Bloomberg https://t.co/roGEgu0VTQ
GBPUSD Looking to Burst Support on Negative Brexit Talk

GBPUSD Looking to Burst Support on Negative Brexit Talk

2018-08-06 08:00:00
Nick Cawley, Analyst
Share:

Sterling Prices, News and Analysis

  • Sellers remain in charge as Brexit talks turn negative.
  • Support under pressure and looks likely to crack.

IG Client Sentimentshows retail are 72% net-long GBPUSD, a bearish contrarian indicator. See how this indicator can help your decision making.

GBPUSD Struggling as Important Support Nears

GBPUSD is struggling to hold the current lowly levels and may break even further lower as the British Pound weakens on negative Brexit news while the US dollar remains firm on higher interest rate expectations. Over the weekend, UK international trade secretary Liam Fox said that there is now a 60-40 chance of a no-deal Brexit, saying “the intransigence of the EU Commission is pushing us towards a no-deal”. This latest caution follows a warning from Bank of England governor Mark Carney last Friday who said that the risk of a no-deal Brexit was uncomfortably high. Late Thursday the BoE raised interest rates by 0.25%, initially boosting Sterling, but the rally was short-lived as the central bank pushed back expectations of the next hike. Ahead this week the calendar is relatively clear until we get the preliminary UK Q2 GDP reading on Friday at 08:30 GMT.

GBPUSD is caught between two notable levels and is likely to break lower. The pair is stuck between the November 2017 double-low at 1.30430 and the July 19 near one-year low at 1.29720. Below here, the August 2017 swing low at 1.27738 should provide strong support in the short- to medium-term. On the upside, a break above 1.30420 will bring into play the 20-day moving average at 1.31040 and the 50-day ma at 1.31888. The RSI indicator is nearing oversold territory but as witnessed between the end of April and the end of May it can stay lowly for some time.

We have recently released our Q3 Trading Forecasts for a wide range of Currencies and Commodities, including GBP and USD.

GBPUSD Daily Price Chart (February 2017 – August 6, 2018)

GBPUSD Looking to Burst Support on Negative Brexit Talk

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

News & Analysis at your fingertips.