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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Heads Up:🇨🇳 Industrial Profits (YTD) YoY (AUG) due at 01:30 GMT (15min) Previous: 57.3%
  • Heads Up:🇦🇺 Retail Sales MoM Prel (AUG) due at 01:30 GMT (15min) Previous: -2.7%
  • Join @FxWestwater at 22:00 EST/2:00 GMT for a webinar on preparing to trade commodities markets in the week ahead. Register here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • RT @FxWestwater: $NZDUSD Struggles as RBNZ Hike Bets Dim. Australian Retail Sales, Chinese Data Near Link: https:/…
  • Heads Up:🇯🇵 BoJ Monetary Policy Meeting Minutes due at 23:50 GMT (15min)
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • Senate GOP blocks bill combining debt ceiling with government funding - BBG
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • Japan says North Korea may have launched ballistic missile Kyodo via BBG
British Pound (GBP) Latest: GBP/USD and FTSE Rally as PM Mulls Lockdown Modifications

British Pound (GBP) Latest: GBP/USD and FTSE Rally as PM Mulls Lockdown Modifications

Nick Cawley, Strategist

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

  • UK lockdown may be changed sooner than original review date.
  • UK assets get an uplift with GBPUSD at a fresh one-week high.

GBP/USD and FTSE 100 Boosted by Lockdown Talks

There are various reports in the media that UK PM Boris Johnson is considering modifying the UK lockdown ahead of the May 7 review date. The Prime Minister will be hosting a coronavirus meeting today and may offer hope of a staggered way out of lockdown. The PM will have noted that Sunday’s COVID-19 numbers showed a decrease across the board, and this may allow him room to begin unlocking the economy earlier than anticipated. The Daily Telegraph quotes one Conservative source saying ‘There is a desire to open the economy. There is a broad acceptance that we can’t just close everything down until a vaccine is found’.

The FTSE 100 continues to nudge higher and is probing levels last seen nearly two weeks ago. The UK big board opened above both the 20- and 50-day moving averages and is closing in on the 38.2% Fibonacci retracement level at 5,889 and the April 14 six week high at 5,944. The FTSE continues to post higher lows and price action may become more volatile around the April 14 high. The recent higher lows will offer protection back to the 5,530 double low made on April 15/16.

FTSE 100 Daily Price Chart (September 2019 – April 27, 2020)

Daily price chart showing the FTSE 100 moving higher

GBPUSD is pushing higher in early turnover, aided by the lockdown talk. Cable is seemingly shrugging off last week’s Brexit talks where both sides admitted that they were no closer to coming to an agreement than before. EU chief negotiator Michel Barnier said that progress between the two sides was disappointing, while the UK highlighted limited progress. If the two sides cannot come to an agreement, the UK will adopt WTO trade rules on January 1, 2021.

GBP/USD continues to post short-term higher lows and has broken the downtrend off the April 14 high at 1.2648. The pair are back above the 20-dma and the 50-dma but the move needs a close above here to give more credibility to the upturn. A weaker US dollar is also helping fuel the move.

GBP/USD Daily Price Chart (September 2019 – April 27, 2020)

Daily price chart showing gbpusd moving higher

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.