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
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
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Bullish
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
Bearish
More View more
Real Time News
  • $GBPUSD churns steadily lower as the Pound Sterling succumbs to broader US Dollar strength, but the cable could soon find technical support. Get your GBP/USD market update from @RichDvorakFX here: https://t.co/3nkJfWLXXV https://t.co/H8x3p1S413
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.28% France 40: -0.28% Wall Street: -0.91% US 500: -1.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/tXRNBSAR3O
  • Fed's Bostic: - No structural changes from coronavirus expected - Not concerned over financial markets having a different outlook on rates $DXY
  • A perusal of top market headlines includes stories equivalent to Dow holds near record highs as outlook for growth and return prevails right next to a 30-year Treasury bond hits record high as market seeks safety. Hmmm... https://t.co/Fe1j9IRx8S
  • German Chancellor Merkel: - A lot of work until a budget deal is reached in the EU - Not sure when EU members will meet again $EURUSD
  • Markets: Challenge accepted https://t.co/pTMKvvCtPi
  • Fed's Clarida: - Expectations are near low end for price stability - BBG
  • Fed's Mester: - Policy should not yield to market if view is not in alignment - BBG
  • #Equity markets are a touch softer as investors continued to fret over the spread of the #coronavirus. Get your market update from @JMcQueenFX here:https://t.co/mcnKa7oryk https://t.co/1NueZEI1xt
  • EU leaders fail to agree on 7-year budget deal - will meet at later date - BBG $EUR
GBPUSD Outlook: No End in Sight for Trend Lower

GBPUSD Outlook: No End in Sight for Trend Lower

2019-08-29 11:00:00
Martin Essex, MSTA, Analyst and Editor
Share:

GBP price, news and analysis:

  • GBPUSD is facing further losses as it falls within a well-defined downward-sloping channel on the daily chart.
  • The suspension of the British Parliament by Prime Minister Boris Johnson is the latest development to have undermined it.

Further losses likely for Sterling

The GBPUSD price outlook remains negative as it continues to drop within a downward-sloping channel on the daily chart that has been in place since early May. After challenging and failing to rise above the resistance line connecting the lower highs recorded over the last three months, it now looks likely to weaken further, to support at the 1.20 “round number” and even perhaps to the channel support line currently at 1.1860.

In the short-term, however, there is support at 1.2154, where the 20-day moving average kicks in and at the 1.2064 low touched on August 20. To the upside, resistance lies at 1.2290, where the line connecting the lower highs checks in, and then at August 27’s 1.2310 high.

GBPUSD Price Chart, Daily Timeframe (May 1 – August 29, 2019)

Latest GBPUSD price chart.

Chart by IG (You can click on it for a larger image)

GBP Price Outlook: Further Falls Possible as Boris Faces Brexit Stalemate

A 'constitutional outrage'

The latest slide lower follows UK Prime Minister Boris Johnson’s decision to suspend the British Parliament for almost a month, in a move seen widely as an attempt to prevent opponents of Brexit from thwarting it. John Bercow, the Speaker of the House of Commons, described the decision as “a constitutional outrage” and it has also increased the chances of both a “no-deal” Brexit on October 31 and a UK General Election this year. A second Brexit referendum is now highly unlikely.

Positioning data bearish too

Further Sterling weakness is also suggested by the latest IG retail trader positioning data. At DailyFX, we take a contrarian view of client sentiment and that data currently implies a bearish outlook for GBPUSD from a contrarian perspective.

IG client sentiment data for GBPUSD.

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES

News & Analysis at your fingertips.