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
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.60% Oil - US Crude: 0.79% Gold: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/f6xT4Uo2tO
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.20% 🇦🇺AUD: 0.13% 🇬🇧GBP: 0.08% 🇨🇭CHF: -0.03% 🇨🇦CAD: -0.05% 🇯🇵JPY: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/co2JkXN1A9
  • LIVE NOW: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.08%, while traders in France 40 are at opposite extremes with 89.09%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/spZkZaPsuM
  • AUD/USD Technical Analysis: September Floor Back Under Fire - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2019/09/23/AUDUSD-Technical-Analysis-September-Floor-Back-Under-Fire.html?utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #technicalanalysis
  • LIVE IN 30 MIN: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • $AUD watchers should keep a close eye on iron ore prices. They fell sharply last month, albeit from very high levels. Get your market update from @DavidCottleFX here: https://t.co/pEY7SReQ7R https://t.co/da6P4i4qBL
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/2:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTtq5C https://t.co/QEgLPbz9Xp
  • RT @KyleR_IG: #ASX jumps half-a-per-cent this morning, as China's Vice Agriculture Minister states that last week's cancelled visit by a Ch…
  • #EURJPY pivot points (daily) – S3: 116.5, S2: 117.87, S1: 118.21, R1: 119.13, R2: 119.72, R3: 120.64 - https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
GBPUSD Price Well Placed to Extend Its Gains

GBPUSD Price Well Placed to Extend Its Gains

2018-08-30 11:00:00
Martin Essex, MSTA, Analyst and Editor
Share:

GBPUSD price, news and analysis:

  • GBPUSD held steady Thursday even though Michel Barnier said the EU must prepare for a no-deal Brexit.
  • That suggests the pair could extend the gains made Wednesday after he said the EU is “prepared to offer Britain a partnership such as there never has been with any other third country”.

Our trading forecasts for Q3 have been published; you can find the GBP guide here.

GBPUSD uptrend still in place

GBPUSD was stable Thursday even though Michel Barnier, the EU’s chief Brexit negotiator, said in an interview that the EU needs to be well prepared for everything and “that includes the no-deal scenario”. His comments took the shine of the gains in the pair Wednesday after he said the EU is prepared to offer the UK a unique partnership after it leaves the bloc next March.

In response to Barnier’s latest comments, GBPUSD was barely changed after its Wednesday gains, suggesting the uptrend in the pair that began two weeks ago will likely extend higher.

GBPUSD Price Chart, Daily Timeframe (June 1 – August 30, 2018)

Latest GBPUSD price chart.

Chart by IG

From a technical perspective, the price has stalled near to the 50-day simple moving average, having broken through trendline resistance to trade above the psychologically-important 1.30 level. However, it could yet reach the 100-day moving average at 1.3183 and then the July 26 high at 1.3214.

There is a warning sign though from retail trader sentiment data, which are flashing a bearish signal with 64% of traders long and only 36% short. At DailyFX we generally take a contrarian view of crowd sentiment.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES

News & Analysis at your fingertips.