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GBP price, news and analysis:

- Attention in the UK is on the publication of the government’s Brexit plans and a visit by US President Donald Trump.

- However, from a technical perspective, GBPUSD is at risk of breaking lower, with 1.30 in sight.

Our trading forecasts for Q3 have just been published; you can find the GBP guide here.

And check out the IG Client Sentiment data to help you trade profitably.

Downside risk for GBPUSD

GBPUSD is at a critical point technically and a move down to the 1.30 level is looking increasingly likely as the UK government issues its long-awaited Brexit plans in the form of a “White Paper” and a visit by US President Donald Trump looks set to be accompanied by widespread demonstrations.

The pair has been trending lower since April 17, when it hit a high of 1.4377. That decline reversed on June 28, when it hit a low of 1.3049 and it has been rallying since then. However, the last few sessions have seen weakness re-emerge.

GBPUSD Price Chart, Daily Timeframe (April 4 – July 12, 2018)

Latest GBPUSD price chart.

Chart by IG

More to read: GBPUSD Price Analysis - Brexit White Paper Will Direct Sterling

As the chart above shows, GBPUSD is poised to break a rising trendline that connects the recent higher lows. If it does, there is little support before 1.30, where two longer-term trendlines converge. The June 28 low of 1.3049 lies just above that but the 1.30 round number looks more important as a medium-target.

If this proves wrong and a rally takes place, rises back to the 23.6% Fibonacci retracement of the slide from the April high, at 1.3360, the July 9 high at 1.3363 and trendline resistance at 1.34 is possible but a slide lower looks more likely.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex