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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 🇮🇹 Business Confidence (JUN) Actual: 114.8 Expected: 112 Previous: 110.9 https://www.dailyfx.com/economic-calendar#2021-06-25
  • 🇮🇹 Consumer Confidence (JUN) Actual: 115.1 Expected: 112 Previous: 110.6 https://www.dailyfx.com/economic-calendar#2021-06-25
  • Hang Seng Tech Index Attempts to Break key Resistance - #HSTECH chart https://t.co/zyCoXqgoVz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.84%, while traders in GBP/JPY are at opposite extremes with 68.93%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/jaai5GlT9Q
  • Heads Up:🇮🇹 Business Confidence (JUN) due at 08:00 GMT (15min) Expected: 112 Previous: 110.2 https://www.dailyfx.com/economic-calendar#2021-06-25
  • Heads Up:🇮🇹 Consumer Confidence (JUN) due at 08:00 GMT (15min) Expected: 112 Previous: 110.6 https://www.dailyfx.com/economic-calendar#2021-06-25
  • Heads Up:🇪🇺 European Council Meeting due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-06-25
  • - Will implement macroprudential measures to fight with inflation if needed
  • Turkish Finance Minister - Turkey to grow more than government forecast in 2021, expecting around 20% growth in Q2 - Central Bank stance on price stability is important
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/txBC7G5EcY
British Pound (GBP) Outlook Remains Positive Going Into The Long Weekend

British Pound (GBP) Outlook Remains Positive Going Into The Long Weekend

Nick Cawley, Strategist

British Pound (GBP) Price Outlook

  • BoE may look at hiking rates in H1 2022.
  • Retail traders’ short positions build.

Recent commentary from Gertjan Vlieghe, an external member of the Bank of England’s MPC, has underpinned Sterling against a range of currencies as the markets drift into a long weekend. Vlieghe suggested that the central bank may look at hiking interest rates in the first half of next year if the UK labor market continued to improve. While employment prospects continue to improve, the UK furlough scheme is set to expire at the end of September, and policymakers will want to see if the market remains buoyant when this program ends.

Ahead of a long weekend in both the UK and US, GBP/USD is quoted around 1.4195, within striking distance of the multi-year 1.4242 high posted in late February. The chart suggests that this high will be tested again soon, with the multi-month uptrend still in charge of the pair. Retail trade data – see below – also points to higher prices with traders increasing their short GBP/USD positions over the last week.

GBP/USD Daily Price Chart (June 2020 – May 28, 2021)

British Pound (GBP) Outlook Remains Positive Going Into The Long Weekend

Retail trader data show 29.30% of traders are net-long with the ratio of traders short to long at 2.41 to 1.The number of traders net-long is 27.79% lower than yesterday and 16.22% lower from last week, while the number of traders net-short is 21.23% higher than yesterday and 10.14% higher from last week.

British Pound (GBP) Outlook Remains Positive Going Into The Long Weekend

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise.Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bullish contrarian trading bias.

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What is your view on Sterling– 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.

DISCLOSURES