British Pound (GBP) Latest: GBP/USD and FTSE 100 Trimming Wild Gains
Sterling and FTSE 100 - News, Prices and Analysis:
GBP/USD Volatility Remains
An extremely volatile week for GBP/USD traders with cable trading between a 1.1444 low made on Monday and a 1.2308 high made early Friday. Monday’s sharp sell-off left traders confused and was quickly recovered, and today’s high print again had little fundamental or technical reasoning behind it. A weaker US dollar has helped the pair push higher but Sterling’s strength against a range of currencies, especially in the current situation, remains questionable. For the current strength to stay in place, the pair need to carve out a trading range to boost positive sentiment and stabilize price action. The daily chart shows a couple of negative signs with the pair rejecting the 20-dma this morning, while mid-week a bearish ‘death-cross’ formed, a closely watched longer-term bear signal. If support around 1.2000 can hold next week, a further attempt at the 20-dma and today’s 1.2308 high may be seen.
GBP/USD Daily Price Chart (September 2019 – March 27, 2020)
For all market moving data and events, see the DailyFX Calendar.
FTSE 100 Swings From Bear to Bull Market
After entering the week heavily in bear market, the FTSE 100 has rallied 22% from low-to-high, sparking short-lived bull market headlines. The surge higher has been fueled by the USD2 trillion US economic rescue package, the latest in a round of global liquidity measures to fight off the economic effects of the coronavirus. UK chancellor of the exchequer Rishi Sunak also announced a raft of unprecedented fiscal measure this week to help prop up the UK economy. The FTSE needs to respect support around the 5,400 level to maintain further upward momentum, which may prove difficult with a 50-dma and 200-dma ‘death cross’ seen on the daily chart. A break and close above the 5,820 area would leave the March 9 high at 6,238 as the next target, with a gap just above back to 6,400.
FTSE 100 Daily Price Chart (August 2019 – March 27, 2020)
What is your view on Sterling (GBP) and the FTSE 100 – 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.