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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/DSp7f3YuAx
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/HNqHcbL6vk
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/FbepD4RaFg
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
British Pound (GBP) Latest: GBP/USD Rebound Looks Fragile After Wild Sell-Off

British Pound (GBP) Latest: GBP/USD Rebound Looks Fragile After Wild Sell-Off

Nick Cawley, Strategist

Sterling and FTSE 100 - News, Prices and Analysis:

  • GBP/USD bounce into the weekend looks unconvincing.
  • UK government expected to announce another fiscal package.
{{GUIDE|Trading_Mistakes}}

GBP/USD Recovery Boosted by US Dollar Weakness

The British Pound is currently trading around 1.1850 against the US dollar, nearly four-and-a-half big figures higher than Thursday’s multi-decade spike low. Sterling remains inherently weak as the spread of coronavirus continues unabated, while yesterday’s emergency interest rate cut and GBP200bn QE program highlights the UK government’s concerns over the economic outlook for the country. After such a savage sell-off, the British Pound may be benefitting from position squaring, or dip-buying, which may leave the pair vulnerable to further sell-offs. The US dollar traded at, then rejected a multi-year high (103.85 on DXY) yesterday, aiding in cable’s recovery, but the US dollars status as the safe-haven of choice remains undiminished.

Later today, the Chancellor of the Exchequer Rishi Sunak, is expected to announce a fresh fiscal package to help boost the UK economy. Talk is the Chancellor will announce national insurance and income tax breaks, with a wage subsidy also mooted, in what has been described as one of the biggest state interventions since the Second World War.

If GBP/USD is to climb further, 1.2000 looks a reasonable upside target which may see the pair pause for breath. After such wild moves, minor resistance areas become less effective as points of entry or exit, especially when volatility, using the ATR indicator, remains at a three-year high. The spread of the coronavirus will continue to drive price-action and with London likely to go into lockdown soon, further negative headlines could see GBP/USD turn lower again.

GBP/USD Daily Price Chart (September 2019 – March 20, 2020)

British Pound (GBP) Latest: GBP/USD Rebound Looks Fragile After Wild Sell-Off

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

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 via Twitter @nickcawley1.

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

DISCLOSURES