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
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
British Pound (GBP) Latest: GBP/USD Range Trading to Persist Amid Brexit Impasse

British Pound (GBP) Latest: GBP/USD Range Trading to Persist Amid Brexit Impasse

Martin Essex, MSTA, Analyst

GBP price, Brexit news and analysis:

  • GBP/USD will likely continue to trade in a narrow range as the UK continues to argue that there is no point in resuming the post-Brexit trade talks with the EU.
  • The key levels to watch are the October 12 high at 1.3082 and the 1.2861 lows touched on October 14 and 16. A break of the range is needed if a trend is to emerge.
Advertisement

GBP/USD at mercy of post-Brexit trade talks

GBP/USD continues to trade in a fairly narrow range and that sideways trading will likely persist as long as the post-Brexit trade talks between the UK and the EU remain deadlocked. Early Tuesday, the junior UK business minister Nadhim Zahawi reiterated that the UK sees no point in resuming negotiations despite chief EU Brexit negotiator Michel Barnier saying Monday that the EU is available to intensify talks in London this week.

Now, there is resistance for GBP/USD at the October 12 high at 1.3082 and support at the 1.2861 lows touched on October 14 and 16, with a break of either support or resistance needed for a new trend in the pair to resume.

GBP/USD Price Chart, Daily Timeframe (July 20 – October 20, 2020)

Latest GBP/USD price chart.

Source: Refinitiv (You can click on it for a larger image)

UK inflation set to rise

Trade talks aside, UK inflation data are due Wednesday and are expected to show sharp rises last month. However, even if confirmed, that would not reignite talks of tighter UK monetary policy and would therefore do little to boost the Pound.

UK inflation data.

Source: DailyFX

You can find out here how inflation data affect currency prices.

Check out here on YouTube our latest Trading Global Markets Decoded podcast with my DailyFX colleague Daniela Sabin Hathorn. You can also find it here on Apple or wherever you go for your podcasts

--- Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

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

DISCLOSURES