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
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
British Pound (GBP) Latest: Sterling Rallies, FTSE Crashes Below 5,000

British Pound (GBP) Latest: Sterling Rallies, FTSE Crashes Below 5,000

Nick Cawley, Strategist

Sterling (GBP) and FTSE 100 News, Prices and Analysis:

  • FTSE 100 nears a nine-year low.
  • Sterling (GBP) off its multi-month lows.

British Pound (GBP) Looks Extremely Oversold

Sterling has pulled off Friday’s multi-month lows after the US Federal Reserve slashed 75 basis points off its lending rate and announced another round of bond buying (QE) to the tune of USD750 billion. This is the second emergency cut by the Fed in the last two weeks and it comes just days before a scheduled FOMC meting on Wednesday, indicating the emergency of the current situation. It remains to be seen if the Fed’s action will work, but other countries will now need to cut further, and introduce additional liquidity measures, forcing a race to the bottom in the FX market. GBP/USD sold-off sharply on Friday and is currently trying to find some support. The only drivers of price action in the short-term will be coronavirus updates and additional central bank measures.

The DailyFX Calendar features all market moving data and events.

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

GBP/USD Weekly Price Chart (January 2017 – March 16, 2020)

British Pound (GBP) Latest: Sterling Rallies, FTSE Crashes Below 5,000
GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -25% 30% 1%
Weekly 5% -11% -5%
Learn how to use Sentiment in your trading strategy
Get My Guide

FTSE 100 Roiled, Desperately Looking for Support

The FTSE 100 continues to slump and has losy more than 2,700 points from its peak with indiscriminate selling forcing global equity markets heavily into bear market territory. Again the chart looks oversold, using the ATR indicator, but sitting on the sidelines is the only way to treat this market in the short-term

FTSE 100 Monthly Price Chart (2003 – March 16, 2020)

British Pound (GBP) Latest: Sterling Rallies, FTSE Crashes Below 5,000

Market volatility remains at multi-year extremes and traders should know how to handle these conditions before making any decisions. DailyFX have a wealth of risk management and discipline resources available to help guide traders through these volatile times.

Becoming a Better Trader – How to Videos.

The DailyFX Online Trading Universityalso has 1000s of updated articles covering all aspects of trading.

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) and the FTSE – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES