Skip to Content
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
British Pound (GBP) Latest: GBP/USD Slides Against a Powerful US Dollar

British Pound (GBP) Latest: GBP/USD Slides Against a Powerful US Dollar

Nick Cawley, Senior Strategist

British Pound (GBP) and FTSE 100 - News, Prices and Analysis:

  • Construction companies looking at re-opening mothballed sites next week.
  • GBP/USD struggling against the US dollar.
Top Trading Lessons
Top Trading Lessons
Recommended by Nick Cawley
Recognise and Eliminate Trading Mistakes
Get My Guide

Construction Companies Looking for a Phased Exit from Lockdown.

UK construction companies Taylor Wimpey and Bovis are both looking to reopen mothballed sites next week, prompting thoughts that the coronavirus may have peaked. According to a report in The Daily Telegraph, UK carmakers JLR and Aston Martin are also working on re-starting production lines next week, a signal that companies believe the time is now right to get back to work. With Boris Johnson back at Downing Street imminently, it may be that a phased exit from lockdown is back at the top of the agenda.

The FTSE 100 is sitting in the middle of this week’s trading range with a series of lower highs and higher lows constricting the range. This may lead to a short-term breakout, especially with the pair currently supported by the 20-dma and restricted by the 50-dma. Any break higher should find resistance at 5,889 (38.2% Fib) and the multi-week high at 5,950. Initial support at 5,625 ahead of the recent double low around 5,530.

FTSE 100 Daily Price Chart (September 2019 – April 24, 2020)

GBP/USD Mixed
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -12% 2% -5%
Weekly 9% -15% -6%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

Sterling is also trading in a narrow range against a strong US dollar in early turnover, with Tuesday candle continuing to hold sway. The US dollar basket (DXY) is within touching distance of making anew one-month high. GBP/USD rejected the 20- and 50-day moving averages on Thursday and needs to stay above 1.2247 to prevent further losses. Thursday’s high and the 20-dma and 50-dma form a cluster of resistance around 1.2420.

GBP/USD Daily Price Chart (September 2019 – April 24, 2020)

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 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.

DISCLOSURES