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British Pound (GBP) Latest: Few Signs Yet of End to GBP/USD Strength

British Pound (GBP) Latest: Few Signs Yet of End to GBP/USD Strength

Martin Essex, MSTA, Analyst

GBP price, Brexit news and analysis:

  • GBP/USD continues to rise with other “risk on” assets as hopes persist of a swift and strong global economic recovery.
  • For now there are few signs of the rally coming to an end but there will doubtless be a retracement at some point.

GBP/USD rally continues

GBP/USD continues to rise with other “risk on” assets such as shares, crude oil, the Euro and the Australian Dollar on hopes that central bank stimulus and an easing of coronavirus lockdown restrictions will enable the global economy to recover quickly from the impact of the pandemic.

Moreover, with the pair touching 1.26 in early London trading Wednesday, there are few signs yet of the rally running out of steam despite the street protests in the US and the lack of news so far from this week’s negotiations on the UK-EU relationship after the Brexit transition period.

GBP/USD Price Chart, Four-Hour Timeframe (May 15 – June 3, 2020)

Latest GBP/USD price chart.

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

GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -3% -13% -8%
Weekly 13% -10% 1%
What does it mean for price action?
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There will be a retracement at some time although there is little indication that one is imminent. However, there is one warning signal: as the four-hour chart above shows the relative strength index (RSI) is now above the 70 level that suggests GBP/USD has been overbought.

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--- 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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