News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
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
Wall Street
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
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.08% 🇬🇧GBP: 0.08% 🇨🇦CAD: 0.07% 🇨🇭CHF: -0.14% 🇳🇿NZD: -0.14% 🇪🇺EUR: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/86MpRGrAms
  • Daily virus cases rise to 31,084 in Italy, new record - BBG
  • "Exquisitely Focused" Great conversation and takeaways on a call this morning with @GuyAdami and the @DailyFX, @IG_US, @Nadex teams!
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: 0.52% FTSE 100: 0.13% Germany 30: -0.27% Wall Street: -1.23% US 500: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/f17Gw2Mdnr
  • RT @DeItaone: $DIS SAYS 11,350 UNION WORKERS TO BE LAID OFF DEC. 31
  • US Treasury Yields: 2-Year: 0.151% 3-Year: 0.194% 5-Year: 0.386% 7-Year: 0.635% 10-Year: 0.862% 30-Year: 1.642% $TNX
  • Hey traders! Wrap up your week with @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/hCkRTy4g9j
  • Minimum loan for Fed's Main Street program lowered to $100k from $250k - BBG
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.06% 🇦🇺AUD: 0.03% 🇪🇺EUR: 0.03% 🇨🇦CAD: 0.00% 🇯🇵JPY: -0.05% 🇨🇭CHF: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/QDlpcBqVdU
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 0.02% FTSE 100: -0.35% Germany 30: -0.64% Wall Street: -1.66% US 500: -1.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/52O6HWbT0o
British Pound (GBP) Latest: Strong UK PMIs Support Positive GBP/USD Outlook

British Pound (GBP) Latest: Strong UK PMIs Support Positive GBP/USD Outlook

2020-01-24 10:30:00
Nick Cawley, Strategist
Share:

Sterling (GBP) Price, Chart and Analysis:

  • BoE rate cut ‘killed off’ by expectation-beating UK PMI release.
  • Withdrawal Agreement signed-off by EU chiefs.

British Pound (GBP) Underpinned by Encouraging PMI Data

The eagerly-awaited UK PMI releases for January, the first look at sentiment post-General Election, showed ‘an encouraging start to 2020’ according to data provider IHS Markit. The survey points to a 0.2% quarterly rate growth, while the ‘uplift in sentiment about the outlook hints at even better growth to come.’

According to Chris Williamson, chief business economist at IHS Markit, "It seems likely that the rise in the PMI kills off the prospect of an imminent rate cut by the Bank of England, with policymakers taking a wait and see approach as they assess the performance of the economy in the post-Brexit environment."

British Pound (GBP) Latest: Strong UK PMIs Support Positive GBP/USD Outlook

Brexit Withdrawal Agreement Signed of in Brussels

The UK-EU Withdrawal Agreement was signed off yesterday by European Commission President Charles Michel and European Commission President Ursula von der Leyen with the bill now going to the European Parliament on January 29 for final ratification. The UK is set to leave the EU on January 31 before entering a transition period in February ahead of the all-important UK-EU trade talks.

GBP/USD Price Slips Lower Post-PMIs but Remains Supported

A bout of profit-taking hit Sterling across the board post-PMIs. The British Pound has been one of the best performing currencies over the last few days, ahead of the PMIs, as traders started to price-out a cut in interest rates at next Thursday’s Bank of England MPC meeting. The daily GBP/USD price chart shows the pair still above the recent downtrend and bouncing back off the 20- and 50-day moving averages situated around 1.3080. There remains support between 1.3035 all the way down to 1.2950 and this should hold firm in the coming days.

For all market moving data releases and events, please see the DailyFX Calendar.

GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Download our Brand New Q1 Sterling Forecast
Get My Guide

GBP/USD Daily Price Chart (July 2019 – January 24, 2020)

GBP/USD daily Price chart
GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -15% 13% -1%
Weekly -12% -16% -14%
Learn how to use Sentiment in your trading strategy
Get My Guide

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 viaTwitter @nickcawley1.

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

DISCLOSURES