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: 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,

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 Mixed
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% -2% 1%
Weekly 0% 8% 4%
What does it mean for price action?
Get My Guide

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.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Martin Essex, MSTA
Improve your trading with IG Client Sentiment Data
Get My Guide

Looking for risk management tips when trading is volatile? Have a listen to our podcast Trading Global Markets Decoded.

--- 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.

DISCLOSURES