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
GBP/USD
Bearish
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
More View more
Real Time News
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • 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: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
British Pound (GBP) Price Outlook: GBP/USD Edging Higher Ahead of BoE

British Pound (GBP) Price Outlook: GBP/USD Edging Higher Ahead of BoE

Martin Essex, MSTA, Analyst

GBP price, news and analysis:

  • GBP/USD is continuing its modest climb higher that began a fortnight ago, and could hit the psychologically important 1.40 level soon.
  • That, though, is dependent on the Bank of England’s monetary policy committee sounding hawkish when it announces its latest decisions Thursday.
Advertisement

GBP/USD waiting for Bank of England

GBP/USD continues to advance modestly, extending the rise that began on July 20 when the pair hit a recent low at 1.3572. The clear near-term target remains the psychologically-important 1.40 level, and Thursday’s announcements by the Bank of England’s monetary policy committee could prove to be the catalyst for that level to be reached and perhaps breached.

When the MPC reports, the focus will be on whether it drops any hints that a monetary policy tightening is on the way, either through a reduction of its asset purchases or even through higher UK interest rates. Note that it will not actually change any of its settings tomorrow but it could begin to warn the markets that a tapering of its assistance program is now being considered – a positive for GBP/USD.

GBP/USD Price Chart, Hourly Timeframe (July 20 – August 4, 2021)

British Pound (GBP) Price Outlook: GBP/USD Edging Higher Ahead of BoE

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

To the downside, if the BoE shrugs off stronger UK inflation and economic growth, there is support at 1.3840 from the downward sloping trendline shown on the chart above that previously acted as resistance and is now supporting the price.

As for the US Dollar, that side of the equation is also relatively stable Wednesday, with traders waiting for Friday’s US labor-market report. Forecasters polled by the financial news agencies are predicting an increase of 880,000 in non-farm payrolls in July, up from the previous 850,000.

--- 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