- CFD trading
- CFD trading
- Markets
- Markets
- Products overview
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Our spreads
- Funding & withdrawals
- Open CFD account
- Try free demo
- Platforms
- Platforms
- Platforms overview
- MetaTrader 4
- MetaTrader 5
- cTrader
- cTrader copy trading
- Mobile trading platforms
- GO WebTrader
- Premium trading tools
- Premium trading tools
- Tools overview
- VPS
- Genesis
- Share trading
- Share trading
- Invest in shares
- Invest in shares
- Trade ASX shares and ETFs
- Share trading platform
- Log into share trading
- Open share trading account
- Help centre
- Downloads
- Downloads
- Android app
- iOS app
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Earnings announcements
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Client support
- Contact us
- FAQs
- Quick support
- Trading hours
- Maintenance schedule
- Fraud and scam awareness
- Legal documents
Open Account
CFD trading
Trade CFDs on forex, commodities, indices, and more.
Open accountTo open a CFD trading account as a Company, Trust, or SMSF, apply here.
Share trading
Invest in shares and ETFs on the Australian share market.
Open accountOpen a Personal or Company/Trust/SMSF share trading account.
- CFD trading
- CFD trading
- Markets
- Markets
- Products overview
- Forex
- Commodities
- Metals
- Indices
- Shares
- Cryptocurrencies
- Treasuries
- ETFs
- Accounts
- Accounts
- Compare our accounts
- Our spreads
- Funding & withdrawals
- Open CFD account
- Try free demo
- Platforms
- Platforms
- Platforms overview
- MetaTrader 4
- MetaTrader 5
- cTrader
- cTrader copy trading
- Mobile trading platforms
- GO WebTrader
- Premium trading tools
- Premium trading tools
- Tools overview
- VPS
- Genesis
- Share trading
- Share trading
- Invest in shares
- Invest in shares
- Trade ASX shares and ETFs
- Share trading platform
- Log into share trading
- Open share trading account
- Help centre
- Downloads
- Downloads
- Android app
- iOS app
- Education
- Education
- Resources
- Resources
- News & analysis
- Education hub
- Economic calendar
- Earnings announcements
- Help & support
- Help & support
- About
- About
- About GO Markets
- Our awards
- Sponsorships
- Client support
- Client support
- Contact us
- FAQs
- Quick support
- Trading hours
- Maintenance schedule
- Fraud and scam awareness
- Legal documents
- Home
- News & analysis
- Forex
- Sterling Seeks Value Amid Brexit Talks
News & analysisWe have seen a quiet recovery for Pound Sterling in the absence of any negative headlines. Add to this some rambunctious tweets from President Trump weakening the Dollar and the GBPUSD pair is tip-toeing upwards, shrugging off the recent dip below 1.30 as nothing more than a temporary blip.
It is these sudden blips or brief recoveries in Cable that leave traders scratching their heads and pondering the now tiresome question, “Is this Brexit related?”.
The short answer is that it is just too difficult to dissect the Brexit fundamentals, mainly due to a lack of clarity surrounding negotiations. I guess you could argue that the longer-term drop in the Pound could be a sign that the market has already begun pricing in a degree of uncertainty, but it’s more likely that nobody truly knows the outcome.
Whatever happens, the technical picture for GBPUSD suggests we may be in for a continued move down unless something drastically changes the overall market sentiment.
A Look At The Charts
First, we will visit GBPUSD on the daily timeframe using the Point & Figure method, as I believe it provides us with a reasonable downside target.
(GBPUSD – Daily)
As shown, a bearish resistance line formed around the 1.36 mark which put us firmly in a downtrend. It was a bold move south from the 1.44 highs and shows signs that the bears are in control longer-term.
Price collapsing through the 130.50 support level was significant as it had failed on three previous attempts. Assuming the weight of this trend continues, the chart suggests 1.28 as the next major area of support. Given we reached as low as 129.60 last week, it appears this level could be within reach in the coming weeks.
Alternatively, a bullish move towards 1.33 would require us to reassess the latest trend, and anything above this region has the potential to be a minefield of choppy resistance. On the daily Ichimoku chart below, we see a great example of this. Note the thickness of the cloud above 1.33, although not impenetrable, it will likely be gather upward momentum.
(GBPUSD -Daily)
Perhaps the most precise view of Brexit’s progress when it comes to the value of Sterling can be seen in the EURGBP pairing.
(EURGBP – Daily)
The EURGBP daily chart highlights Brexit’s indecision or lack of clarity as reflected in this longer-term range. Since October last year, we have yet to see a final move from either the Pound or the Euro.
Euro Winning The Race To Break First
One thing I would point out is that the Euro has its nose in front regarding strength against the Sterling. The latest price is trading well-above the 200 EMA (Exponential Moving Average) which is a bullish signal. We can also see the Euro gaining much ground over the past month against its counterpart. Any continuation of this move would make 0.90 a critical level to watch.
Remaining Focused In A Sleepy Market
There is always a tendency to become complacent when currencies have been trading in a long-term range, or when political campaigns survive well past their use by date, polluting the fundamentals. Trading can become less exciting, and we start to assume that the status quo will remain. In this case however, it is worth keeping tabs on the Pound Sterling, as once Brexit is resolved one way or another, we could see some considerable shifts in the market whilst as those on the sidelines are caught napping.
Adam Taylor CFTe
GO MarketsThis article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Ready to start trading?
The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.
#Forex #ForexAnalysis #ForexBroker #ForexCharts #ForexMarket #ForexNews #ForexSignal #ForexTradingNext Article
Time For a Change? Considering Longer or Shorter Timeframe FX and CFD Trading
One of the most common questions we are asked on some of the webinar sessions we run is “What timeframe might be best for me to trade?”. This slightly longer article than we would usually write, seemed merited to provide some detailed “food for thought” as it appears to be an important issue for many. This is not something w...
July 24, 2018Read More >Previous Article
Safety First for Japanese Yen
Have you spotted something unusual happening with the Japanese Yen? With the likes of protectionism dominating global headlines, the Yen is weakening ...
July 20, 2018Read More >Please share your location to continue.
Check our help guide for more info.