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
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Trader tip: Not making a decision means avoiding #FOMOintrading. @IlyaSpivak https://t.co/PGD0n13D9p
  • Easing trade tensions provide tailwinds for equity markets. Get your update form @JMcQueenFX here: https://t.co/79q553DJNa
  • Here's a link to my technical outlook for the Dollar this week: 'US Dollar Facing Measured Breakout and In Its Long Grind Higher' https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/09/22/US-Dollar-Facing-Measured-Breakout-and-In-Its-Long-Grind-Higher.html?utm_source=Twitter&utm_medium=Kicklighter&utm_campaign=twr
  • RT @business: A senior official from the Bank for International Settlements has added his voice to those calling on governments to back up…
  • RT @JimPethokoukis: “The recent rise in trade policy uncertainty is extraordinary by several metrics ... much evidence points to negative e…
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/JxyCkhOHSS
  • What is the biggest obstacle a trader needs to overcome to be successful? Find out from @JWagnerFXTrader here: https://t.co/7nWHSApUzS #FOMOintrading https://t.co/vXfEWo58RY
  • OECD warns of recession, central banks unleash, and the $USD builds breakout pressure. Get your update from @JohnKicklighter here: https://t.co/UKg6wfl8PB
  • What are the 6 common mistakes traders make? Is #FOMO a common mistake? Find out from @PaulRobinsonFX here:https://t.co/B7hOpGEHMp #FOMOintrading https://t.co/WOYk6lOJur
  • All currencies are not the same; emerging market #FX trades differently than developed market FX. Find out how these currencies differ, from @CVecchioFX here: https://t.co/BH8oal18sz https://t.co/IvomjZw0Bc
GBPUSD Price Rallies to a Six-Week High, Brexit Latest

GBPUSD Price Rallies to a Six-Week High, Brexit Latest

2019-09-13 08:40:00
Nick Cawley, Analyst
Share:

  • Cable continues its push higher as fears of Hard Brexit fade further.
  • Irish border compromise being mooted.

Q3 2019 GBP Forecast and Top Trading Opportunities

Sterling (GBP) Pushes Higher as No-Deal Brexit Worries are Pared

The Pound continues to strengthen against a range of currencies as one influential UK newspaper reports that the DUP may be softening its position towards the Irish backstop. The Timessaid that the Democratic Unionist Party is considering some EU rules as part of a new deal to replace the contentious Irish backstop. A DUP spokesman later denied the report, but Sterling has taken strength from the rumor and continues to price out a Hard Brexit on October 31.

The current weakness of the US dollar is also helping GBPUSD to push higher as investors continue to price-in a rate cut at next week’s FOMC meeting. Thursday’s rate cut and renewed QE by the ECB has added extra pressure on the Federal Reserve to weaken the US dollar by cutting rates and adding increased forward guidance. GBPUSD trades back above 1.2400 for the first time in six weeks and may push higher with little in the way of strong resistance to break until 1.2576.

GBPUSD traders should take note of the latest US Retail Sales figures released at 12.30 GMT with expectations of a month-on-month 0.2% rise in August compared to a 0.7% increase in July.

For all economic and data releases see the DailyFX Economic Calendar

GBPUSD Daily Price Chart (December 2018 - September 13, 2019)

GBPUSD Price Rallies to a Six-Week High, Brexit Latest

We are continually looking to improve our service and your views can help us. Please let us know what you think via our Short Online Survey Here.

IG Client Sentiment data show that of retail traders are 67.4% net-long of GBPUSD, a bearish contrarian indicator. However, recent daily and weekly positional changes suggest give us a stronger GBPUSD bearish contrarian bias

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 and Brexit? 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.

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

DISCLOSURES

News & Analysis at your fingertips.