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
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
GBP/USD
Mixed
USD/JPY
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
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Japan’s All Industry Activity Index (MoM) (AUG) Actual: 0.0% Est: 0.1% Previous: 0.2% #JPY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.04%, while traders in Germany 30 are at opposite extremes with 78.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cCfWKn4CzA
  • (ASEAN Fundamental Forecast) US Dollar Outlook: MYR, SGD May Fall on CPI. Rupiah to Drop on Cut? #USD $USDMYR $USDSGD $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/21/US-Dollar-Outlook-MYR-SGD-May-Fall-on-CPI-Rupiah-to-Drop-on-Cut.html?CHID=9&QPID=917702 https://t.co/3u9AfXqbeN
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.22% 🇦🇺AUD: 0.10% 🇨🇦CAD: -0.03% 🇯🇵JPY: -0.10% 🇨🇭CHF: -0.14% 🇬🇧GBP: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZjiVEE5Iuw
  • Heads up: Japan’s All Industry Activity Index (MoM) (AUG) is due at 4:30 GMT (15 min) Est: 0.1% Previous: 0.2% #JPY
  • Heads Up:🇯🇵 JPY All Industry Activity Index (MoM) (AUG) due at 04:30 GMT (15min), Actual: N/A Expected: 0.1% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2019-10-21
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.36% Wall Street: 0.31% France 40: 0.26% Germany 30: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2lBu42B9fy
  • Over the past 30 days, #Ghana Cedi, #Egyptian Pound and #Kenyan Shilling have been the best performing African currencies vs #USD with 0.85%, 0.67% and 0.17% spot returns respectively
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/m2sMVRiVef
  • LIVE NOW: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
GBPUSD, EURGBP  - Sterling Slumps as No-Deal Brexit Fears Intensify

GBPUSD, EURGBP - Sterling Slumps as No-Deal Brexit Fears Intensify

2019-07-30 11:00:00
Nick Cawley, Analyst
Share:

Sterling – GBPUSD and EURGBP Prices, Charts and Analysis:

  • GBPUSD oversold after Monday’s slump.
  • EURGBP sitting in extreme overbought territory.

Q3 2019 GBP Forecast andTop Trading Opportunities

GBPUSD – Heavily Oversold in the Short-Term

After making a recent 27-month low just below 1.2120, GBPUSD has turned higher, although the move currently lacks any conviction and is likely short-covering after the pair’s 260+ pip fall since Monday morning. Waves of negative Brexit headlines continue to force Sterling lower and with neither the UK or the EU in any mood to make the first move towards breaking the current deadlock, GBP will remain under pressure. GBPUSD stopped just before the March 2017 swing low at 1.2109 in Asian trade Tuesday and may consolidate at these lower levels. The CCI indicator is at its weakest/lowest level since mid-December 2018 and is indicating an extremely oversold market now. This extreme positioning may need to balance out through before Sterling attempts to make a fresh low. To the upside there is little technical resistance until 1.2382.

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

GBPUSD Daily Price Chart (October 2018 – July 30, 2019)

GBPUSD, EURGBP - Sterling Slumps as No-Deal Brexit Fears Intensify

Retail traders are 81.2% 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.

EURGBP Pierces Resistance, Touches a 22-Month High

Another Sterling-pair that has hit a fresh high, EURGBP will need a period of consolidation if it is to push even higher with the CCI indicator hitting extreme overbought conditions and at levels not seen in over two years. While the CCI indicator has been in overbought territory for most of the last three months, the current extreme level needs to be considered ahead of any move higher. The old EURGBP high at 0.91165 will probably act as first-line support before a partial re-test of Monday’s bull candle, and the old July 17 swing high at 0.9051, comes into play.

EURGBP Daily Price Chart (December 2018 – July 30, 2019)

GBPUSD, EURGBP - Sterling Slumps as No-Deal Brexit Fears Intensify

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 or EURGBP – 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.