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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
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
Wall Street
Mixed
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.00% 🇳🇿NZD: -0.02% 🇯🇵JPY: -0.15% 🇨🇭CHF: -0.23% 🇦🇺AUD: -0.25% 🇪🇺EUR: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/O8Qb7OHZza
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.30% Gold: -0.33% Silver: -0.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/lEALo4Z1M9
  • The S&P 500 breakdown is testing the first major zone of support and we’re looking for a reaction. Get your S&P500 technical analysis from @MBForex here:https://t.co/JrTNmQ5c7g https://t.co/D79T1134P9
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.29%, while traders in EUR/GBP are at opposite extremes with 65.04%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lzTHuIgzFQ
  • US Equities Update (Friday Close): $DJI +1.34% $SPX +1.60% $NDX +2.34% $RUT +1.59% $VIX -7.93%
  • Another turbulent week for the Pound with the currency falling 1.6% against the greenback. Get your $GBPUSD market update from @JMcQueenFX here:https://t.co/WjU4oYpmf7 https://t.co/hkow2om7I6
  • Heads Up:🇺🇸 Fed Williams Speech due at 19:10 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-25
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.07% Gold: -0.16% Silver: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/hbSoMksZVd
  • With South Africa recently easing restrictions in an effort to reopen the economy, investors are still wary about the future of the emerging market. Get your $USDZAR market update from @Tams707 here:https://t.co/f5Jmukipg0 https://t.co/o5Dyok2O99
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in EUR/GBP are at opposite extremes with 65.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/eO8yAFDUvh
GBPUSD Price Continues to Press Lower, Testing Support Levels

GBPUSD Price Continues to Press Lower, Testing Support Levels

2018-10-19 07:58:00
Nick Cawley, Strategist
Share:

Sterling (GBP) Talking Points:

  • No change after latest EU Summit.
  • Sterling remains under selling pressure.

The DailyFX Q4GBP Forecast is available to download.

GBPUSD – Negative Sterling Sentiment Remains

The latest EU Summit meeting ended yesterday with a familiar refrain from the European Union, saying both sides are close to agreeing a deal, but the UK must come up with a way to break the Irish border impasse. This lack of forward momentum will continue to weigh on the pound as the March 31, 2019 nears. In addition, UK PM Theresa May confirmed that she had talks with the EU about a potential extension of the transition period, something that will not go down well at home and puts her position as Prime Minister under further scrutiny. With the November ‘emergency’ meeting seemingly cancelled, the mid-December European Council meeting now becomes critical in the Brexit process if any deal is to be reached.

Even if a deal is agreed at the last minute, the PM must get the bill voted through an increasingly fractious UK Parliament, something that currently looks unlikely, whatever the make-up of the EU/UK agreement.

The daily chart shows yesterday’s sell-off took us through the Fibonacci retracement level at 1.3067 with ease. More importantly cable closed below this level which adds extra credibility for a move lower, leaving 1.29221 and 1.27856 as the next two support levels ahead of the multi-month low at 1.2662. Brexit headlines, at any time, may still turn market sentiment supportive for GBP but as we stand the path of least resistance for GBPUSD is lower, especially against an ever-strengthening US dollar.

US Dollar Index Daily Price Chart (January – October 19, 2018)

GBPUSD Price Continues to Press Lower, Testing Support Levels

Recent Sterling/Brexit Articles:

Brexit Latest: PM May Needs Support from a Fractured Cabinet.

Brexit Analysis: How GBP and Stocks Might React to Alternative Outcomes.

GBPUSD Daily Price Chart (March - October 19, 2018)

GBPUSD Price Continues to Press Lower, Testing Support Levels

IG Client Sentiment data show that retail traders are 65.9% net-long GBPUSD, a bearish contrarian set-up. However, recent daily and weekly positional shifts give us a stronger bearish trading bias.

Traders may also be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

--- 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