GBPUSD Price Slumps to Fresh 27-Month Low, No Respite in Sight
Sterling (GBPUSD) Price, Chart and Analysis
- GBPUSD slumps on weak Sterling, strong US dollar double.
- A possibility the pair may trade below 1.2000 in the short-to-medium term
GBPUSD Weakness Continues
Cable has just traded at the lowest level since April 2017 as sellers take complete control of the market. In slightly holiday-thinned conditions, GBPUSD fell ahead of today’s UK jobs and wages data, steadied post-release and then fell further with sellers off stop losses on the way down.
We noted on Monday that Sterling looked weak and this is now playing out against a range of currencies with losses ranging between 0.50% and 0.90%
IG Client Sentiment data paints a mixed picture despite Sterling traders being 79.9% net-long of GBPUSD, a negative contrarian bias. Recent daily and weekly positional changes however give us a stronger bearish GBPUSD trading bias.
The daily chart shows the current sell-off and now the pair will be looking at potential support levels from over two years ago. The April 2017 low at 1.2360 is the next target ahead of 1.2108, the March 2017 low, before the January 2017 low around 1.1983 comes into view. To the upside, 1.2600 may be hard to pierce in the current environment.
GBPUSD Daily Price Chart (January 2018 – July 16, 2019)
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