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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
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
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here:
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX!
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here:
  • #Crudeoil prices could reverse lower as the #OPEC Monthly Oil Market Report (MOMR) forecasts fading global demand and oversupply concerns. Get your #commodities update from @DanielGMoss here:
  • The outlook for the $EURUSD pair has worsened after its failure to move back to the high just above 1.20 touched on September 1 despite the #ECB’s decision earlier this month not to talk down the Euro. Get your #currencies update from @MartinSEssex here:
  • #USDollar Outlook Bearish on Mnuchin & Powell Testimonies, Key US Data ⬇️
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here:
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here:
  • The Japanese #Yen may continue to exhibit a bullish behavior as the Bank of Japan (BoJ) appears to be in no rush to alter the path for monetary policy. Get your #currencies update from @DavidJSong here:
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here:
GBPUSD Analysis: Dip Buyers Seen at Multi-Month Sterling Lows

GBPUSD Analysis: Dip Buyers Seen at Multi-Month Sterling Lows

2018-08-09 10:45:00
Nick Cawley, Strategist

Sterling Prices, News and Analysis

  • GBPUSD may rebound further after heavy selling abates.
  • UK newspaper The Times reports that the EU may abandon one of its ‘four pillars’.

IG Client Sentimentshows retail are 72% net-long GBPUSD, a bearish contrarian indicator.

GBPUSD Short-Term Rebound Taking Shape but Long-Term Trend Remains Negative

GBPUSD bulls are currently in control of the market and pushing the pair back up to short-term resistance levels after weeks of selling. GBPUSDtoday hit a near one-year low of 1.2842 but then bounced higher after a report in The Times hinted that the EU may shift its previously rigid stance on EU goods trade and freedom of movement. The Times report said that ‘European leaders are preparing to negotiate a deal that would let Britain remain in the single market for goods while opting out of free movement of people’. While this would still fall short of the UK’s Brexit demands, any easing of tensions would provide short-term relief for an increasingly weak Sterling complex.

The one-hour GBPUSD chart shows a sharp rebound from today’s low and the pair are now pushing into the 20- and 50-day cloud. A break above here would leave a short-term target range between 1.29125 and yesterday’s double top at 1.29605.

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

GBPUSD One Hour Price Chart (July 31 – August 9, 2018)

GBPUSD Analysis: Dip Buyers Seen at Multi-Month Sterling Lows

Longer-Term Outlook for Sterling Remains Negative

The daily GBPUSD chart continues to point to lower prices in the medium- to long-term as overriding Brexit fears continue to rattle investor’s confidence. The pair are also being driven by a strong US dollar where buyers continue to buy any sell-offs. The third 0.25% US rate hike of 2018 is fully expected when the FOMC meet in September while an additional rate rise is nearly fully priced in for the December meeting. GBPUSD may find support at the August 2017 swing low at 1.27738 while the RSI indicator is touching oversold territory and should act as a brake on any further sharp falls.

GBPUSD Daily Price Chart (August 2017 – August 9, 2018)

GBPUSD Analysis: Dip Buyers Seen at Multi-Month Sterling Lows

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

Follow Nick on Twitter @nickcawley1

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