GBP/USD Picks up, EUR/GBP Rallies, FTSE Nears Support - Webinar
Sterling (GBP) Pairs - Prices, Charts and Analysis:
- GBPUSD making limited gains, EURGBP picking up on Euro strength.
- FTSE 100 nears 200-day/Fibonacci support.
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Financial Markets Rattled by Heightened US-China Trade War
Risk-off trades dominated the start of the week after US President Donald Trump applied an additional round of tariffs on Chinese imports. Over the weekend, the closely-watched USDCNH rate traded above 7.00, a weakening that will rile the US and may see additional action taken
Risk-off markets received a strong bid in Asian hours which rolled over into Europe. Equity markets slumped by near 2%, taking the FTSE 100 close to a support area where the 200-day moving average meets an important Fibonacci retracement level.
GBPUSD picked up a fraction in European trade and may keep pushing ahead, but gains are likely limited, and risk-reward makes taking a position difficult. EURGBP traded just under 0.9200, as the EUR picked up a small bid and the recent high around 0.9300 may come under pressure.
EURGBP Weekly Price Chart
Retail traders are 79.3% 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 GBPUSD bearish contrarian trading bias.
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