GBP price, news and analysis:
- GBP/USD continues to trade sideways, close to the 1.24 level.
- However, the recent slide lower in EUR/GBP persists and that downtrend could well go further even as markets generally stabilize Thursday ahead of US jobs data.
EUR/GBP trending lower
Global financial markets are showing signs of calming down Thursday ahead of US weekly employment data expected to show another huge rise in jobless claims. That is having a calming influence on GBP/USD, which continues to trade close to the 1.24 level, as it has all this week so far. The FTSE 100 index of leading London-listed stocks looks more stable too.
However, the slide lower in EUR/GBP, which began in mid-March, could well persist. So far, that slide has taken the pair down from almost 0.95 to just below 0.88 and there is now little long-term support ahead of the lows around 0.83 recorded in mid-February.
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EUR/GBP Price Chart, Two-Hour Timeframe (March 19 – April 2, 2020)
Chart by IG (You can click on it for a larger image)
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As the chart above shows, EUR/GBP is not yet oversold, with the relative strength index well above the 30 figure that points to an oversold market. However, the price has now fallen below the 20-day moving average and there should be some short-term support from the 50-dma, currently at 0.8717.
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— Written by Martin Essex, Analyst and Editor
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