Pound slumps against the dollar

The British Chambers of Commerce might expect the UK economy to surpass its pre-crisis peak, but that hasn’t stopped heavy selling in GBP/USD today.

The sunny weather has given way to cloud cover by midday in London, and sterling’s outlook looks gloomier at present, despite the fact that we are about to recover all economic ground lost since the 2008 peak.

The upward trend in GBP/USD is intact, but the price appears to be heading back towards the 50-day moving average, with the possibility of testing the lows seen in the final week of February, around $1.6580.

The GBP/USD pairing has been constrained in a relatively tight trading range in recent weeks, bounded by $1.6600 on the bottom and towards $1.6800 on the top. Any bias to the downside, which is the move we are seeing today, is likely to be capped by the rising trendline of the July 2013 lows.

At the moment, the downward move means the 24 February low, around $1.6580, is the first target and area of support to look for.

Spot FX GBP/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.