- UK inflation release don Wednesday.
- EU talks in Austria may help unlock Brexit.
The DailyFX Third Quarter Forecasts are available and free, including a look at GBP.
IG Sentiment Data show traders are 65.9% net-long GBPUSD. However recent daily and weekly positional changes give us a mixed trading outlook.
Sterling Respecting the Uptrend – EU Meeting May Decide the Next Move
GBPUSD is nudging back above 1.3100 in quiet trade and respecting theuptrend started on September 5 (four-hour chart). UK inflation figures are set to be released on Wednesday at 08:30 GMT with expectations that price pressures may have eased slightly. A lower inflation print may ease Sterling lower, but the main market driver is expected to be the informal EU Summit in Salzburg on the same day.
The latest rumors in the UK press are that the EU are looking closely at a way of breaking the current Irish border deadlock, a move that would strengthen Sterling further and indicate that EU/UKtrade talks are back on track. Positive Brexit news should see GBPNZD perform well, while the domestically-orientated FTSE 250 may well outperform the FTSE 100.
GBPUSD Four-Hour Price Chart (July 17 – September 17, 2018)
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--- Written by Nick Cawley, Analyst
To contact Nick, email him at nicholas.cawley@ig.com
Follow Nick on Twitter @nickcawley1
