GBP price, news and analysis:
- GBP/USD continues to storm ahead, reaching its highest level since 2018.
- Moreover, its long-term trend higher remains in place, suggesting even more gains to come.
- This is not just about “risk-on” sentiment in the markets generally; GBP is also strong independently against other currencies such as the Euro.
GBP/USD still trending higher
Further long-term gains in GBP/USD are looking increasingly likely after the pair hit its highest level since May 2018 and continues to climb within a well-defined channel on the weekly chart.
GBP/USD Price Chart, Weekly Timeframe (February 26, 2018 – January 27, 2021)
Source: IG (You can click on it for a larger image)
Other currencies such as AUD, NZD and CAD have also benefited from a risk-on tone in the markets based on vaccine rollouts, the prospect of a substantial US pandemic relief program, an upgrade by the IMF of its 2021 growth forecasts and a decline in new Chinese Covid-19 cases.
However, GBP continues to outperform some of its rivals, as the EUR/GBP chart below shows.
EUR/GBP Price Chart, Daily Timeframe (March 4, 2020 – January 27, 2021)
Source: IG (You can click on it for a larger image)
Here too, GBP is well placed for further gains after a break to the downside in the pair.
| Change in | Longs | Shorts | OI |
| Daily | 0% | 5% | 3% |
| Weekly | -41% | 84% | -4% |
We look at currencies regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts
--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
