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GBP/USD, EUR/GBP and FTSE 100 Weekly Updates - UK Market Webinar

GBP/USD, EUR/GBP and FTSE 100 Weekly Updates - UK Market Webinar

Nick Cawley, Senior Strategist

GBP/USD, GBP/AUD and FTSE 100 – Prices, Charts and Analysis:

  • GBP/USD continues to slide as Sterling weakens across the board.
  • FTSE 100 caught between the 20- and 50-day moving averages
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The British pound continues to press lower and is now testing the 1.23 handle as the 50-day moving average caps any upside move. The EU and UK today kicked-off their latest round of trade talks with both sides wanting to make progress although both are unwilling to make the first move. If no middle ground can be found this week, Sterling could fall further. GBP/USD is touching a new one-month low and has now fallen by five big figures in the last three weeks. Support from the 50% Fibonacci retracement level at 1.2306 is being tested and if this level is breached, 1.2160 is likely to be the next level of support. The 50-dma at 1.2406 should provide the first area of short-term resistance.

GBP/USD Daily Price Chart (December 2019 – June 29, 2020)

GBP/USD Mixed
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of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 12% 0% 5%
Weekly -13% 13% 1%
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EUR/GBP continues to press higher and is at its highest level in three months. Initial resistance is likely to be seen at the 23.6% Fibonacci retracement level of 0.9213. The pair have accelerated off the strong uptrend line that started at the end of April and any sell-off should be contained by the 38.2% Fib retracement at 0.9035 and recent lows all the way down to 0.9000.

EUR/GBP Daily Price Chart (December 2019 – June 29, 2020)

The FTSE 100 is currently caught in a moving average pincer movement with support from the 50-dma at 6,102 and resistance from the 20-dma at 6,224 which guards the 50% Fib retracement at 6,233. The market is neither oversold or overbought, using the CCI indicator, and the FTSE will need a macro-driver to break its current restrictive trading range. If the 50-dma folds, support at 6,028 will likely be tested before 5,932. Last Tuesday’s high at 6,342 should hold in the short-term.

FTSE 100 Daily Price Chart (December 2019 – June 29, 2020)

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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.

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