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
Oil - US Crude
Bearish
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.45% 🇦🇺AUD: 0.41% 🇨🇦CAD: 0.24% 🇪🇺EUR: 0.19% 🇨🇭CHF: 0.14% 🇯🇵JPY: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GIhmNlRbox
  • Heads Up:🇯🇵 All Industry Activity Index MoM due at 04:30 GMT (15min) Previous: -0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.11% France 40: 1.11% FTSE 100: 0.66% Wall Street: 0.56% US 500: 0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2KW0hE7YH7
  • AUSTRALIA PM MORRISON: - Businesses need to judge China risk, but iron ore trading figures reassuring - Reopening the economy over 3-5 years will be more difficult than closing it down, facing "most challenging [economy]...outside of wartime." #AUDUSD
  • (#ASEAN Fundy) The US Dollar could rise against ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data $USDSGD #USD $USDINR - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/05/25/US-Dollar-May-Rise-as-SGD-Falls-on-US-China-Woes-Indian-Rupee-at-Risk.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/BHR1vaN8vO
  • BOJ GOV KURODA: - will consider expanding ETF purchases if needed - monetary easing is needed until price-target is met - will consider new easing measures if needed - BoJ's extraordinary measures wont stay post-coronavirus #USDJPY #BOJ
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.44% Oil - US Crude: 1.02% Gold: 0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zbMOhIkpeW
  • As political tensions between the US and China increase, $gld is picking up a safe-haven bid ahead of the long weekend and may look to press higher. Get your $XAUUSD market update from @nickcawley1 here: https://t.co/boUn4vyfCO https://t.co/beDj1yEO0U
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.29% 🇦🇺AUD: 0.28% 🇬🇧GBP: 0.17% 🇪🇺EUR: 0.14% 🇨🇭CHF: 0.12% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qj45yOo16T
  • BOJ GOV KURODA: - will consider changing rates of yield curve control if needed - will consider expanding loan programs if needed #USDJPY #BOJ
GBPUSD Outlook: Positive on Talk of Brexit Deadline Extension

GBPUSD Outlook: Positive on Talk of Brexit Deadline Extension

2019-01-24 11:00:00
Martin Essex, MSTA, Analyst
Share:

GBP price, news and analysis:

  • Talk of an extension of the March 29 Brexit deadline for the UK to leave the EU is strengthening GBPUSD.
  • It reached a high of 1.3095 early Thursday, its strongest level since November 8 last year, before easing back marginally, and could yet extend its gains.

GBP price firm; further gains possible

GBPUSD hit its highest level Thursday since early November before easing back a tad. It now seems to be in a good place to extend its gains, having climbed above the psychologically important 1.30 level that may limit any losses.

GBPUSD Price Chart, Daily Timeframe (September 12, 2018 – January 24, 2019)

Latest GBPUSD price chart pre Brexit.

Chart by IG (You can click on it for a larger image)

Sterling’s primary driver remains Brexit and it is benefiting from speculation that the so-called Article 50 deadline of March 29 for the UK to leave the EU could be extended.

Meanwhile, from a technical perspective, the next target will likely be the high at 1.3175 reached on November 7 last year. To the downside, trendline support lies at 1.2832 if 1.30 is breached.

Bullish signal from sentiment data

In the meantime, retail trader sentiment data show 44.5% of GBPUSD traders are net-long, with the ratio of traders short to long at 1.25 to 1. The number of traders net-long is 6.4% lower than yesterday and 15.1% lower than last week, while the number of traders net-short is 17.4% higher than yesterday and 31.3% higher from last week.

At DailyFX, we typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests the GBPUSD price may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPUSD-bullish contrarian trading bias.

More to read:

Brexit Timeline Infographic

Brexit Effect on Pound and UK Stocks

Using News and Events to Trade Forex

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.