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British Pound (GBP) Latest: GBP/USD Holds Support, Creeping Higher

British Pound (GBP) Latest: GBP/USD Holds Support, Creeping Higher

Martin Essex, MSTA, Analyst

GBP price, news and analysis:

  • GBP/USD is still rising within a triangle pattern on the charts and will likely continue to do so as long as trendline support holds.
  • Its resilience in the face of a political storm over the UK Prime Minister’s chief adviser suggests a lack of selling pressure.

GBP/USD edging ahead

The British Pound continues to climb slowly within a triangle pattern on the chart and will likely edge further ahead as long as support holds from the trendline joining the higher lows in place since March 19.

GBP/USD Price Chart, Daily Timeframe (February 6 – May 26, 2020)

Latest GBP/USD price chart.

Chart by IG (You can click on it for a larger image)

For now, traders are shrugging off a political row over UK Prime Minister Boris Johnson’s chief adviser Dominic Cummings, who said Monday that he should have explained the circumstances of a 250 mile journey during coronavirus lockdown in the country but that his decision to take the trip had not been a mistake.

Along with other so-called risk assets, GBP is benefiting from hopes that the UK and other global economies will continue to ease restrictions imposed to stem the coronavirus outbreak. They have been helped too by news that China will strengthen its economic policy and counter-cyclical adjustments and continue to push to lower interest rates on loans, according to central bank Governor Yi Gang in an interview published by the central bank Tuesday.

That has helped global stocks, with the FTSE 100 index of leading London-listed stocks up nearly 2% in early trading Tuesday, and is outweighing continuing US-China trade tensions and protests in Hong Kong against proposed new national security laws.

Interested in reading an in-depth guide on what trendlines are, how to draw them and how to apply this when trading FX? Check out this story on why the trend is your friend.

We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below

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

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