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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
British Pound (GBP) Latest: Outlook Bleak as Brexit Slide Continues

British Pound (GBP) Latest: Outlook Bleak as Brexit Slide Continues

2020-02-04 09:10:00
Martin Essex, MSTA, Analyst
Share:

GBP price, Brexit news and analysis:

  • Both UK Prime Minister Boris Johnson and EU chief negotiator Michel Barnier are taking hardline positions ahead of Brexit negotiations that will begin shortly.
  • Despite two days of Sterling frailty, that suggests GBP/USD weakness and EUR/GBP strength will likely persist.

GBP/USD outlook poor as both sides of the Brexit negotiations take hard line

GBP/USD may well take a breather after the falls so far this week but the outlook for the pair is poor as both UK Prime Minister Boris Johnson and EU chief negotiator Michel Barnier make clear that the two sides are still way apart ahead of negotiations on UK-EU relations now Brexit has taken place. Similarly, further EUR/GBP gains are on the cards.

In a speech Monday, Johnson said there is no need for the UK to follow EU rules and called for a Canada-style free trade deal, saying the UK would return to the Withdrawal Agreement if such a deal was not reached.But the EUs Barnier said its ambitious trade deal offer required a level playing field.

Starts in:
Live now:
Dec 01
( 10:12 GMT )
Recommended by Martin Essex, MSTA
Trading Sentiment
Register for webinar
Join now
Webinar has ended

In response Sterling has fallen against a strong US Dollar to its lowest level since Christmas Eve and the outlook remains poor. Moreover, it is not yet oversold, although a small rally cannot be ruled out before weakness returns.

GBP/USD Price Chart, Daily Timeframe (December 5, 2019 – February 4, 2020)

Latest GBP/USD price chart.

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

With Johnson likely to lay down tough terms for a post-Brexit deal and the EU wanting alignment, GBP is vulnerable to further setbacks and the latest positioning data from the Commitments of Traders’ report showed that large speculators’ bullish bets on Sterling have moderated. GBP/USD could slide to around 1.2910, where previous resistance from a downward sloping trendline now provides support.

GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -10% -13% -12%
Weekly 13% -6% 0%
What does it mean for price action?
Get My Guide

The outlook remains bright, though, for the FTSE 100 index of leading London-listed stocks. As many of the companies in the index have a global reach, they would benefit in overseas markets from Sterling weakness.

We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below

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

DISCLOSURES