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
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
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
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
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
Mixed
More View more
Real Time News
  • Bitcoin Price: How Will Halving, Coronavirus Affect BTC? https://www.dailyfx.com/forex/fundamental/article/special_report/2020/03/25/Bitcoin-Price-How-Will-Halving-Coronavirus-Affect-BTC.html
  • The #Euro has dropped through support guiding it higher from late-March lows, suggesting that the end of a corrective rebound has given way to downtrend resumption. Get your $EURUSD market update from @IlyaSpivak here: https://t.co/gpKowYNmGi https://t.co/wYNFD6wf9w
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/12:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/STxkKaBIb5
  • The $USD suddenly seems scarce amid the #coronavirus outbreak. That threatens short-term financing underpinning global supply chains, despite the Fed’s epic efforts. Get your US Dollar market update from @DavidCottleFX here:https://t.co/D2p2VlkpJi https://t.co/6vQ0glFrd5
  • President Trump: US may be getting to the top of the #coronavirus curve
  • US President Trump says he will ask Congress for another $250 billion in coronavirus support
  • We could really go for a 'no news is good news' market lean heading into the second half of this shortened holiday week
  • $USDJPY Daily Pivot Points: S3: 106.63 S2: 107.48 S1: 107.99 R1: 108.84 R2: 109.19 R3: 110.04 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • A close below the low end of the zone reflects a possible bearish comeback. This may send $GBPUSD towards 1.1958. Get your GBP/USD technical analysis from @malkudsi here: https://t.co/QsOiOQEVJb https://t.co/JDT9dztvu8
  • $EURUSD Daily Pivot Points: S3: 1.0653 S2: 1.0732 S1: 1.0769 R1: 1.0847 R2: 1.0889 R3: 1.0967 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
GBPUSD Price at Risk of Break Lower on Brexit Splits, Firm Dollar

GBPUSD Price at Risk of Break Lower on Brexit Splits, Firm Dollar

2018-09-27 11:00:00
Martin Essex, MSTA, Analyst
Share:

GBPUSD price, news and analysis:

  • Brexit splits among members of the UK Cabinet, alongside a modestly firmer US Dollar, could endanger the past month’s advance in GBPUSD.
  • Technically, the pair is now sitting on trendline support; losses are likely if it breaks.

Check out the IG Client Sentiment data to help you trade profitably.

GBPUSD facing possible correction lower

After advancing steadily since the middle of last month, factors are conspiring to undermine the GBPUSD price.

The Times newspaper reported Thursday that UK Prime Minister Theresa May is losing the support of her Cabinet for a no-deal Brexit if the European Union again rejects her “Chequers” proposals for an agreement next month.

In addition, the US Dollar is modestly firmer in the wake of Wednesday’s decision by the Federal Reserve to increase US interest rates by a quarter of a percentage point, as expected. Together, these factors are outweighing any optimism about a possible US-UK trade deal after a meeting between May and US President Donald Trump.

GBPUSD Price Chart, Daily Timeframe (May 30 – September 27, 2018)

Latest GBPUSD price chart.

Chart by IG

Meanwhile, as the GBPUSD chart above shows, the pair is now sitting on trendline support and any break below it would be a negative technical signal. However, the downside is also protected by the 100-day moving average at 1.3090 and the 20-day moving average at 1.3076 before the September 21-24 lows between 1.3054 and 1.3063 will come into focus.

If, on the other hand, the trendline support holds, a move back towards the middle of the upward sloping channel around 1.33 is possible.

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:

--- 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

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

DISCLOSURES

News & Analysis at your fingertips.