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
  • 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
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
British Pound (GBP) Latest: GBP/USD Upside Persists , EUR/GBP Bearish - UK GDP Firms

British Pound (GBP) Latest: GBP/USD Upside Persists , EUR/GBP Bearish - UK GDP Firms

Justin McQueen, Strategist

GBP/USD, EUR/GBP Price Analysis & News

  • GBP/USD Sees Limited Reaction to Better Than Expected GDP
  • EUR/GBP Remains Bearish Below 0.8860

UK Q4 GDP Recap

UK GDP Q4 Y/Y: -6.5% vs Exp. -8.1% (Prior -8.9%) - Q/Q: 1.0% vs Exp. 0.5% (Prior 4.1%)

UK GDP for the fourth quarter came in firmly above expectations at 1% (Exp. 0.5%), which saw the yearly rate at -6.5%, against the consensus of -8.1%. While the GDP data has printed notably better than expected, this is not entirely a surprise, given last week’s BoE monetary policy report, in which the central bank stated that Q4 GDP was materially better than their initial forecasts. In turn, the Pound has seen a very muted reaction to the data with GBP/USD continuing to hover around the 1.38 handle. Going forward, the vaccine rollout will remain among the key drivers for the Pound. On the technical front, upside risks remain for GBP/USD, although, while the pair has eased a touch from the mid-1.38s, dips are likely to be bought with support situated 1.3750-60 and the 20DMA at 1.3708.

GBP/USD Chart: Daily Time Frame

British Pound (GBP) Latest: GBP/USD Upside Persists , EUR/GBP Bearish - UK GDP Firms

Source: Refinitiv

EUR/GBP Remains Bearish Below 0.8860

EUR/GBP: The cross has struggled to break through key support at 0.8746 (61.8% fibonnaci fib) and thus has found some slight reprieve from its recent sell off. However, the EUR/GBP remains bearish below 0.8860 and thus I remain biased to fading rallies in the cross. As I mentioned last month, the vaccine trade is in full swing, alongside this, with the BoE among the first central banks to talk about tapering QE, GBP is likely to remain underpinned.

EUR/GBP Chart: Daily Time Frame

British Pound (GBP) Latest: GBP/USD Upside Persists , EUR/GBP Bearish - UK GDP Firms

Source: Refintiiv

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

DISCLOSURES