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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Keppel Corp is seeking to buy Singapore Press Holdings (SPH) for S$2.2 billion following the spin-off of its media assets, and plans to delist and privatize the company - BBG
  • S&P 500 Futures Lift Nikkei 225, Regulatory Risks Hit Chinese Stocks
  • 🇰🇷 Markit Manufacturing PMI (JUL) Actual: 53 Previous: 53.9
  • Heads Up:🇰🇷 Markit Manufacturing PMI (JUL) due at 00:30 GMT (15min) Previous: 53.9
  • 7 out of 11 S&P 500 sectors ended lower, with 58% of the index’s constituents closing in the red. Consumer discretionary (-2.78%), energy (-1.76%) and utilities (-0.87%) were among the worst performers, whereas materials (+0.40%) and real estate (+0.32%) outperformed.
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here:
  • RT @Yeap_IG: Short introduction to the #Supertrend technical indicator!
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX!
  • Bitcoin ended a 10 consecutive day advance with yesterday's bearish close - breaking pace only after it overtook the 100-day moving average. That 10-day climb matches the longest bull charge with only two other examples. $BTCUSD
British Pound (GBP/USD) Breaks Supportive Trendline Ahead of Bank of England (BoE) Meeting

British Pound (GBP/USD) Breaks Supportive Trendline Ahead of Bank of England (BoE) Meeting

Nick Cawley, Strategist

British Pound (GBP) Price Outlook

  • GBP/USD rattled by US dollar strength.
  • Thursday’s Bank of England meeting now key.

Sterling has started the week on the back foot and remains at multi-week lows printed during Friday’s sell-off. The ongoing strength of the US dollar continues to weigh on the pair, and with the Fed now taking a hawkish turn, all eyes will be on the Bank of England this Thursday to see if the UK central bank warns against the recent rise in inflation. While all BoE policy measures are expected to left unchanged, last week’s ONS figures showed inflation jumping to 2.1% in May y/y, compared to 1.5% in April, the highest level in nearly two years and above the central bank’s 2% target. While the BoE is expected to maintain its loose monetary policy, any hint that the central bank is worried about inflation will spark fresh talk that interest rates may rise sooner than currently anticipated.

GBP/USD has broken below a long-running bullish trendline, suggesting further weakness ahead. Initial support at 1.3800 is currently being tested and a confirmed break lower will open the way to a cluster of lows around 1.3670. The pair remained heavily oversold and this may temper any short-term weakness.

The CPI and Forex: How CPI Data Affects Currency Prices

GBP/USD Daily Price Chart (April 2020 – June 21, 2021)

British Pound (GBP/USD) Breaks Supportive Trendline Ahead of Bank of England (BoE) Meeting

Retail trader data show 66.19% of traders are net-long with the ratio of traders long to short at 1.96 to 1. The number of traders net-long is 2.86% higher than yesterday and 34.30% higher from last week, while the number of traders net-short is 4.07% higher than yesterday and 34.10% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall.

Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBP/USD 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.