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. See our updated Privacy Policy here.

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
Subscribe
Please try again
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
More View more
Real Time News
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/Bnih4YvTdg
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
GBP Price Outlook: More Weakness Likely as Brexit Talks Near Collapse

GBP Price Outlook: More Weakness Likely as Brexit Talks Near Collapse

Martin Essex, MSTA, Analyst

GBP price, news and analysis:

  • GBPUSD could extend its slide as UK Prime Minister Theresa May is urged to end the Brexit talks between her ruling Conservatives and the opposition Labour Party.
  • Having already fallen below the psychologically-important 1.30 level, a drop in GBPUSD towards its February lows cannot be ruled out.

Sterling pressure could intensify

UK Prime Minister Theresa May looks to be on the verge of abandoning talks between her ruling Conservatives and the opposition Labour Party designed to reach a Brexit compromise acceptable to a majority of members of the UK Parliament.

According to reports, senior Conservatives are urging her to end the discussions, while the pressure on her to resign as Prime Minister is also intensifying. After Monday’s fall in GBPUSD below the 1.30 level in late afternoon trading in Europe, that could mean further weakness ahead.

GBPUSD Price Chart, Hourly Timeframe (May 3-14, 2019)

Latest GBPUSD price chart.

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

DailyFX poll: Corbyn could be best successor to PM May for GBP

As the chart above shows, GBPUSD has been trending lower since the beginning of last week and, for technical analysts, an obvious first target is the April 29 low at 1.2865. However, below that, there is little further support ahead of February 14’s 1.2773 low.

There is a warning signal too from the IG client sentiment data. The figures, which show how retail traders are positioned, show 70.8% of traders are net-long, with the ratio of traders long to short at 2.43 to 1. In fact, traders have remained net-long since May 6, when GBPUSD traded near 1.3092; the price has moved 1.1% lower since then. The number of traders net-long is 7.8% higher than yesterday and 24.8% higher from last week, while the number of traders net-short is 4.1% higher than yesterday but 26.5% lower from last week.

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

Latest GBPUSD positioning data.

Source: DailyFX

You can learn more about how to use the sentiment data by listening in to my weekly webinars every Wednesday at 1130 GMT. You can sign up for all our webinars here

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