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
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
Gold
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
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Catch up with @JStanleyFX as he walks through some FX price action setups post-FOMC. Get your recap here: https://t.co/MD2PB33t0L
  • What is the @ecb (European Central Bank)? What are the key mandates of the bank and how can it affect the #forex market? Find out: https://t.co/romV4hPQJv https://t.co/4nlCaUNhpD
  • Your psychology has a significant impact on the decisions you make, particularly if you are new to trading. How can you avoid your emotions from turning you into a #FOMO trader? Find out: https://t.co/FC7CHpk9vA #FOMOintrading https://t.co/WSDr3JkpAG
  • $AUDUSD: Short-term support could lead-in to a quick bounce up to resistance as taken from another prior support level, plotted around the .6830 level on the chart. Get your market update from @JStanleyFX here: https://t.co/tUoe1Roo5t https://t.co/omaDxGNhZU
  • Central bank independence has several advantages. Find out what they are in detail with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/cQQmuH8biQ
  • The US Dollar remains in consolidation mode against the Philippine Peso and Indian Rupee. Will the Singapore Dollar weaken as $USDSGD rising support holds ahead? Find out from @ddubrovskyFX here: https://t.co/HZ8Loqj3Ey https://t.co/6PCFkdj3ka
  • Follow @DailyFXedu for your regular #webinar updates with @DailyFX analysts and catch up on the webinars you missed. https://t.co/Da10QUg9r1
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
Sterling (GBP) Price: Brexit Vote Impact on GBPUSD and EURGBP

Sterling (GBP) Price: Brexit Vote Impact on GBPUSD and EURGBP

2019-01-16 08:30:00
Nick Cawley, Analyst
Share:

GBPUSD and EURGBP Technical Analysis

  • Fundamentals turning mildly positive for Sterling.
  • EURGBP looking weak and likely to fall further.

We have recently released our Q1 2019 Trading Forecasts for a wide range of Currencies and Commodities, including GBPUSD along with our latest fundamental and medium-term term technical outlook.

GBPUSD Building a Base

UK PM May will face a no confidence vote later in the session – one that she is fully expected to win - and will face calls from within her party to change her Brexit bill after last night’s humiliating defeat. And with a growing groundswell of MPs saying that they will reject any No Deal Brexit scenarios, Sterling should benefit from this improved sentiment. And with sentiment playing an increasingly important role in trading, especially in the Sterling space, any edge can help. The IG Client Sentiment Data shows how retail traders are positioned and why it matters. Currently retail are 51.4% net-long of GBPUSD, a mildly bearish contrarian set-up. However, daily and weekly changes in the data set suggest that GBPUSD may in fact trend higher.

Pound May Extend Gains as PM May Survives No-Confidence Vote.

GBPUSD currently trades around 1.2875 and continues to nudge higher, with the 23.6% Fibonacci retracement level at 1.2894 the first, close, target. Above here the important short-term target is the 200-day moving average at 1.2990, which if broken will see GBPUSD break 1.3000 in quick order, printing a two-month high. Above here, 1.3177 – 38.2% Fibonacci – and 1.3300 come into play and if broken and closed above will add an extra positive momentum to Sterling, breaking a recent pattern of lower highs.

GBPUSD Daily Price Chart (May 2018 – January 16, 2019)

Sterling (GBP) Price: Brexit Vote Impact on GBPUSD and EURGBP

EURGBP Post-Brexit Vote Falls to Continue

EURGBP is under downside pressure from both sides as Sterling sentiment improves and Euro sentiment weakens after ECB President Mario Draghi warned yesterday of the need for further, substantial, stimulus. This warning comes on top of the recent slew of weak eurozone data that has recently weighed on the single currency. The technical set-up is further negative after breaking both the 50% Fibonacci retracement level and the important 200-day moving average. Next support is at 0.8803 – 61.8% Fibonacci – before the October 10 swing-low at 0.8723 and the November 13 swing-low at 0.8655.

EURGBP Daily Price Chart (March 2018 – January 16, 2019)

Sterling (GBP) Price: Brexit Vote Impact on GBPUSD and EURGBP

DailyFX has a vast amount of resources to help traders make more informed decisions. These include a fully updated Economic Calendar, and a raft of constantly updated Educational and Trading Guides

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES

News & Analysis at your fingertips.