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
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
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇪🇸 Unemployment Change (FEB) due at 08:00 GMT (15min) Previous: 76.2K https://www.dailyfx.com/economic-calendar#2021-03-02
  • #Bitcoin, #Ethereum Forecast: BTC/USD, ETH/USD Bullish Reversal at Hand? - https://www.dailyfx.com/forex/market_alert/2021/03/02/Bitcoin-Ethereum-Forecast-BTCUSD-ETHUSD-Bullish-Reversal-at-Hand.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $BTC $ETH $BTCUSD $ETHUSD https://t.co/Pdgnmg5zIV
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/xaTWTOPNgw
  • 🇩🇪 Retail Sales YoY (JAN) Actual: -8.7% Expected: 1.3% Previous: 2.8% https://www.dailyfx.com/economic-calendar#2021-03-02
  • 🇩🇪 Retail Sales YoY (JAN) Actual: -8.7% Expected: 1.3% Previous: 1.5% https://www.dailyfx.com/economic-calendar#2021-03-02
  • 🇬🇧 Nationwide Housing Prices YoY (FEB) Actual: 6.9% Expected: 5.6% Previous: 6.4% https://www.dailyfx.com/economic-calendar#2021-03-02
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/zA96KRFLyW
  • Heads Up:🇬🇧 Nationwide Housing Prices YoY (FEB) due at 07:00 GMT (15min) Expected: 5.6% Previous: 6.4% https://www.dailyfx.com/economic-calendar#2021-03-02
  • Heads Up:🇩🇪 Retail Sales YoY (JAN) due at 07:00 GMT (15min) Expected: 1.3% Previous: 1.5% https://www.dailyfx.com/economic-calendar#2021-03-02
  • We kicked off this new week and month with a bounce in risk trends, but far from convincing of systemic reversal. Meanwhile, 'taper tantrum' interest/fears have charged even higher. What I'm watching ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/03/02/EURUSD-At-Key-Support-While-SP-500-Recovers-as-Yields-Level-Out.html https://t.co/egUmCJ4eKk
British Pound (GBP), FTSE Latest: Outlook Bleak For Sterling and Stocks

British Pound (GBP), FTSE Latest: Outlook Bleak For Sterling and Stocks

Martin Essex, MSTA, Analyst

GBP price, FTSE 100, Brexit news and analysis:

  • London stocks and the British Pound are again falling together despite the usual inverse correlation between the two markets.
  • The FTSE 100 index is now technically oversold and due for a bounce although further losses are on the cards once the correction is over.
  • As well as coronavirus fears, the approach of post-Brexit talks between the EU and the UK is making traders in UK assets nervous.

GBP/USD and FTSE 100 unnerved by coronavirus and Brexit

GBP/USD and the FTSE 100 index of leading London-listed stocks are again falling together despite the usual inverse correlation between the two assets. While the FTSE in particular now looks technically oversold and due for a near-term bounce, the outlook remains poor for both Sterling and the FTSE on fears about the spread of the coronavirus and nervousness ahead of talks on the future relationship between the UK and the EU that begin Monday.

The chances of a global recession have now risen substantially because of the impact of Covid-19. Moreover, investors in both the Pound and London stocks will likely remain nervous as the post-Brexit negotiations begin – with UK Prime Minister Boris Johnson seemingly ready to walk away from the talks and prepare for the UK to leave the EU without a deal at the end of this year if sufficient progress is not made by June, according to a new document setting out the UK Government’s stance in the negotiations.

GBP/USD Price Chart, Daily Timeframe (November 21, 2019 – February 28, 2020)

Latest GBP/USD price chart.
GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% 8% 6%
Weekly 32% -33% -12%
What does it mean for price action?
Get My Guide

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

As the chart above shows, GBP/USD has now fallen for three successive sessions but is not yet oversold. By contrast, the FTSE 100, which has dropped for eight sessions in a row, is now heavily oversold as measured by the relative strength index shown at the bottom of the chart below, now well under the 30 level that signals an oversold market.

FTSE 100 Price Chart, Daily Timeframe (November 29, 2019 – February 28, 2020)

Latest FTSE 100 price chart.
FTSE 100 MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -12% 30% -6%
Weekly -2% -10% -4%
What does it mean for price action?
Get My Guide

A near-term FTSE correction higher would be no surprise but, longer-term, it is hard to see a sustained rally given coronavirus, recession fears and the talks on the future relationship between the UK and the EU that are likely to emphasize how far apart the two sides are.

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