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
Bullish
USD/JPY
Bullish
Gold
Bullish
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
Mixed
More View more
Real Time News
  • The ECB rate decision is a top fundamental event risk later today. It is unlikely that they add on top of September's flood, but path of least resistance is sticking to range and retail traders are heavy bears: https://t.co/GCyvs6nYth
  • South Korea Q3 GDP shows 0.4% growth print Q/Q, missing 0.3% estimate - BBG #USDKRW
  • #Gold: Buyers have remained at bay, even with the $USD sell-off, as a bull flag formation has built around a 23.6% retracement of that recent major move.Get your $gld market update from @JStanleyFX here: https://t.co/tkY4716pfC https://t.co/mik1bjz3Fo
  • #BRL, #COP and the #CLP are expected to be the most active Latin American currencies vs USD with 1-week implied volatilities at 13.55, 10.30 and 10.06 respectively
  • RT @LiveSquawk: News Recap - - Some BOJ Policy Makers Want to Save Ammunition - WSJ https://t.co/zweqHl37Ij
  • Australia’s CBA Australia PMI Composite (OCT P) Actual: 50.7 Est: N/A Previous: 52.0 CBA Australia PMI Mfg (OCT P) Actual: 50.1 Est: N/A Previous: 50.3 CBA Australia PMI Services (OCT P) Actual: 50.8 Est: N/A Previous: 52.4 #AUD
  • With Tesla up nearly 20% in after-hours trading, the company has seen its market cap balloon by roughly $9b from $45.5b to $54.4b Pretty incredible short squeeze if you ask me $TSLA
  • Tomorrow holds a few high profile fundamental updates: ECB decision (mon pol) and PMIs (recession fear). But, this pales in comparison to the densely packed run of key events for next week (US and EZ GDP, FOMC decision, BOJ forecasts, Chinese industrial profits; sentiment surveys
  • Heads Up:🇦🇺 AUD CBA Australia PMI Composite (OCT P) due at 22:00 GMT (15min), Actual: N/A Expected: N/A Previous: 52.0 https://www.dailyfx.com/economic-calendar#2019-10-23
  • Heads Up:🇦🇺 AUD CBA Australia PMI Services (OCT P) due at 22:00 GMT (15min), Actual: N/A Expected: N/A Previous: 52.4 https://www.dailyfx.com/economic-calendar#2019-10-23
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.