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
GBP/USD
Mixed
USD/JPY
Bearish
Gold
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
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • Just a reminder, the White House's deadline on the auto tariff decision is due today after the extension. Stay on Twitter watch. Trump seems to like make big calls shortly after the close...
  • Heads Up:🇳🇿 NZD BusinessNZ Manufacturing PMI (OCT) due at 21:30 GMT (15min), Actual: N/A Expected: N/A Previous: 48.4 https://www.dailyfx.com/economic-calendar#2019-11-14
  • RT @ABehsudi: Commerce is expected to extend a limited, temporary waiver for blacklisted firm Huawei, notwithstanding any last-minute direc…
  • RT @zerohedge: POMO is temporary, they said. It's just a mid-September tax payment, they said https://t.co/nBeHAZ9kJc
  • $MJ: Pot stock market caps going 'up in smoke' https://t.co/q3v88TVO93
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: France 40: 0.19% Germany 30: 0.11% US 500: 0.02% Wall Street: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TtF93qmxed
  • Oh, team building exercises. I'm sure that brought Knot and Holzmann around to dropping concerns about diminishing returns on negative rates and extreme monetary policy... https://t.co/5lpgsAJtbC
  • Update on #Cryptocurrencies #BITCOIN -1.15% #BITCOINCASH -2.47% #ETHEREUM -1.87% #RIPPLE -1.87% #LITECOIN -2.84%
  • RT @CNBCnow: BREAKING: The 50 attorneys general investigating Google are preparing to expand their antitrust investigation beyond the compa…
  • remaining operations will include 14-day with $35b offering
Brexit Latest, GBP/USD Rally Struggles, EUR/GBP Fades Lower

Brexit Latest, GBP/USD Rally Struggles, EUR/GBP Fades Lower

2019-08-06 11:00:00
Nick Cawley, Analyst
Share:

Sterling (GBP) Pairs - Prices, Charts and Analysis:

  • UK PM still faces a strong internal battle to get Brexit through on time.
  • Sterling (GBP) trying to rally back after recent heavy sell-off.

Q3 2019 GBP Currency Forecasts andTop Trading Opportunities

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

Sterling (GBP) Ignores Brexit News

Former attorney general and staunch Remainer Dominic Grieve has said that while the House of Commons may be unable to stop PM Boris Johnson taking the UK out of the EU on October 31 without a deal, ‘there are a number of things the House of Commons can do, including bringing down the government and setting up a new one in its place’. Earlier, Boris Johnson’s top adviser Dominic Cummings said that it was now too late to stop a no-deal exit, and that even if the PM lost a vote of no-confidence, he could call for an election the day after the UK left the EU, rendering the Remainers plan ineffective.

What-is-The-Brexit-Backstop-and-How-Does-it-Impact-The-Pound

Sterling has taken the latest round of Brexit news in its stride and is starting to re-coup some of its recent heavy losses against both the Euro and the US dollar, although both pullbacks look weak so far.

GBPUSD currently trades just under 1.2200 after hitting a 27-month of 1.2079 last Thursday. The daily chart shows a pattern of four higher lows in a row (Sunday candle excluded) although momentum is weak and may turn lower at any time. GBPUSD will likely struggle to break back above the high print on the July 29 sell-off candle at 1.2382 unless there is a bout of positive Brexit news, or if the US dollar sells-off sharply.

GBPUSD Daily Price Chart (October 2018 – August 6, 2019)

Brexit Latest, GBP/USD Rally Struggles, EUR/GBP Fades Lower

Retail traders are 77.7% net-long GBPUSD according to the latest IG Client Sentiment Data, a bearish contrarian indicator. However recent daily and weekly positional changes suggest that GBPUSD may soon reverse higher.

EURGBP has edged lower after hitting a near two-year high earlier in today’s session. After trading at a low of 0.8490 in early May, the pair has powered higher with green (bullish) candles dominating the chart. While the euro will be impacted by a no-deal Brexit, in the short-term the downside looks limited and any sell-off should find support around 0.9050.

EURGBP Daily Price Chart (November 2018 – August 6, 2019)

Brexit Latest, GBP/USD Rally Struggles, EUR/GBP Fades Lower

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 Sterling (GBP) – 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.