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.

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
EUR/USD
Mixed
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Canadian #Dollar Price Outlook: $USDCAD Returns to Range Support - #Loonie Levels- https://t.co/Jryw74dPkT https://t.co/8rDsCdLbFb
  • US Treasury Yields: 2-Year: 0.151% 3-Year: 0.175% 5-Year: 0.279% 7-Year: 0.459% 10-Year: 0.617% 30-Year: 1.317% $TNX
  • RT @FirstSquawk: U.S. TO BACK NATIONS WHOSE SOUTH CHINA SEA CLAIMS CHINA VIOLATED
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.92%, while traders in US 500 are at opposite extremes with 75.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/q96ash6VEz
  • Canadian Dollar (CAD) is coming under pressure as FX traders digest dovish central bank outlook underpinned by sluggish inflation expectations post-COVID. Get your $USDCAD market update from @RichDvorakFX here: https://t.co/PWUPp1tbfa https://t.co/ksOeej284m
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.09% Silver: 0.75% Gold: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HmQWswBdHh
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.70% 🇳🇿NZD: 0.58% 🇦🇺AUD: 0.39% 🇬🇧GBP: 0.25% 🇪🇺EUR: 0.08% 🇨🇭CHF: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BQ6phOiioU
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.32% US 500: 0.28% FTSE 100: -0.50% Germany 30: -0.57% France 40: -0.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ixBXQB8v3I
  • Senator McConnell says he talked with Secretary Mnuchin today on next stimulus package - BBG
  • Fed's Harker: - Recovery path slow and uneven - Banks well positioned to withstand pandemic stress - Important to extend enhanced unemployment benefits in some from - DJ via BBG
British Pound (GBP) Latest: Crucial EU/UK Trade Talks, Emergency UK Stimulus Package Talk

British Pound (GBP) Latest: Crucial EU/UK Trade Talks, Emergency UK Stimulus Package Talk

2020-06-01 08:00:00
Nick Cawley, Strategist
Share:

British Pound (GBP) – EU/UK Talks and GBP/USD Forecast, Chart and Analysis:

  • EU/UK trade talks to continue against a backdrop of ‘no deal’ warnings.
  • GBP/USD short-term outlook improves.
GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Get Your Free GBP Forecast
Get My Guide

GBP/USD Regains 1.2400 as the US Dollar Slips Lower

The EU and UK trade negotiating teams will continue post-Brexit trade discussions this week with both sides dialing up the blame game rhetoric. EU chief negotiator Michel Barnier said over the weekend in an interview with The Sunday Times that the UK is not keeping to its original commitments and that there would not be an agreement ‘at any cost’. In response, a UK government ‘source’ quoted by The Daily Telegraph said that it is the EU who are dragging their feet and that the commission ‘are either not ready or not willing to inject momentum’. If no progress is made this week, the odds will shorten on the two parties trading on WTO terms from the start of next year.

UK Chancellor of the Exchequer Rishi Sunak is said to be drawing up plans for an emergency stimulus package in early July, in a further attempt to re-boot the UK economy. Sunak fears that the UK hospitality sector could lose as many as two million jobs if it is not re-opened by the summer. The Chancellor also said that furloughed workers could return to work on a part-time basis in July, one month earlier than previously stated, while businesses must start contributing towards staff costs from August.

GBPUSD currently trades either side of 1.2400, continuing last week’s push higher. Friday’s month-end rebalancing saw Sterling better bid and the US dollar better offered, underpinning the pair. GBP/USD continues to make a series of short-term higher lows and is now back above the 50-dma. The 50% Fibonacci retracement level at 1.2306 should act as short-term support and the 61.8% Fib level at 1.2517 as resistance.

GBP/USD Daily Price Chart (December 2019 – June 1, 2020)

GBPUSD daily price chart
GBP/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% 3% 3%
Weekly -13% 7% -4%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

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

News & Analysis at your fingertips.