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
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
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
Bitcoin
Bullish
More View more
Real Time News
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
  • The $GBPUSD may be carving out a 4-year bearish candlestick pattern as the $EURGBP downtrend prolongs. GBP/JPY may rise but be wary of #Brexit risks clouding technical analysis. Get your GBP market update from @ddubrovskyFX here: https://t.co/wzV4fygKWe https://t.co/hpDmrh0LLo
  • Get your technical setups for the British Pound ahead of the key #Brexit vote in Parliament this weekend here $GBPUSD $EURGBP $GBPJPY - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/19/GBPUSD-EURGBP-GBPJPY-Technical-Analysis-Amid-Brexit-Deal-Vote.html?CHID=9&QPID=917702 https://t.co/TBdvAY6GN2
  • The Australian Dollar could reverse gains if #Brexit is forced to be delayed. Global growth slowdown woes and other fundamental risks may also undermine $AUDUSD upside progress. Get your $AUD market update from @ddubrovskyFX here: https://t.co/VAs2C3cpQj https://t.co/9mqJ0DSLZZ
  • Here is my trading video for the week ahead: '$EURUSD, #Pound, Volatility - The Biggest Risks and Opportunities Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/19/EURUSD-Pound-Volatility---The-Biggest-Risks-and-Opportunities-Ahead-.html
  • $GBPUSD is on the verge of pushing above five-year resistance. A break above with follow-through may precede considerable upside movement. Get your GBP/USD market update from @ZabelinDimitri here: https://t.co/0qfh7TRWJn https://t.co/GImIwuGodX
  • The $AUD may resume its downtrend while the #ASX 200 stock index powers higher as dovish monetary policy drives interest rates lower. Get your market update from @IlyaSpivak here: https://t.co/UPlHZrt6c2 https://t.co/EIIf9xackw
  • (Fundamental Forecast) Australian Dollar Could Wilt if Brexit Delayed, Growth Risks Hang $AUDUSD #Brexit - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2019/10/19/Australian-Dollar-Could-Wilt-if-Brexit-Delayed-Growth-Risks-Hang.html?CHID=9&QPID=917702 https://t.co/2aOYhblN3g
  • The $USD faces selling pressure against the Malaysian Ringgit and Philippine Peso. More losses may be in store in $USDMYR as $USDPHP descends through rising support from 2013. Get your market update from @ddubrovskyFX here: https://t.co/t3kmFpmg1w https://t.co/miBrgxmtkA
  • $AUDJPY has launched yet another attempt to breach a multi-month downward trend resistance after failing to break above it in September. Will two consecutive defeats precede a reversal lower? Find out from @ZabelinDimitri here: https://t.co/b3nWUu0QZy https://t.co/Lj0ZSWOdp1
GBPUSD Crumbles as The US Dollar Continues its Pre-FOMC Run

GBPUSD Crumbles as The US Dollar Continues its Pre-FOMC Run

2019-07-29 08:00:00
Nick Cawley, Analyst
Share:

Sterling (GBP) Price, Chart and Analysis:

Q3 2019 GBP Forecast andTop Trading Opportunities

GBPUSD Back at March 2017 Lows as US Dollar Rallies

The great US dollar rally continues with the greenback approaching a fresh two-year+ high, despite markets fully expecting a 25-basis point interest rate cut at Wednesday’s FOMC meeting. The US dollar continues to benefit from both the Euro and Sterling’s struggles, and the likelihood is that both will continue to slip lower. The German bond market continues to highlight the weakness in the Euro with yields now negative out to 20-years while the 30-year long bond offers just 19 basis points. The ECB is fully expected to cut rates at its September meeting and will likely re-start QE this year.

US Dollar Basket (December 2018 - July 29, 2019)

GBPUSD Crumbles as The US Dollar Continues its Pre-FOMC Run

Sterling remains weak and is trading at a 2-year+ low against the SU dollar as the UK ratchets up expectations of leaving the EU with or without a deal on October 31. The British Pound may also underperform with this week’s Bank of England ‘Super Thursday’ expected to show a more dovish twist, further undermining GBP.

GBPUSD broke out of the symmetrical triangle we wrote about last week and may see further losses in the short-term. The technical set-up remains weak although the CCI indicator is at extreme levels (oversold) on the daily chart and this may temper the move lower. On a weekly chart there are two old higher lows at 1.2109 and 1.1983 before the October 2016 spike-low at 1.1800, all of which may tempt Sterling bears.

Keep up to date with all key economic data and event releases via the DailyFX Economic Calendar

GBPUSD Daily Price Chart (December 2018 – July 29, 2019)

GBPUSD Crumbles as The US Dollar Continues its Pre-FOMC Run

Retail traders are 82.0% net-long GBPUSD according to the latest IG Client Sentiment Data, a bearish contrarian indicator. However recent daily and weekly positional changes give us a stronger bearish contrarian GBPUSD trading bias.

GBPUSD Weekly Price Chart (February 2016 – July 29, 2019)

GBPUSD Crumbles as The US Dollar Continues its Pre-FOMC Run

Traders may 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.

What is your view on GBPUSD – bullish or bearish? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES

News & Analysis at your fingertips.