Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Sterling strength on Brexit news lifts GBP/USD and pushes down EUR/GBP

As the UK and EU move towards a deal, the pound has been given further impetus, gaining ground against the dollar and the euro.

GBP/USD climbs on Brexit deal news

It looks like we may, finally, get a deal on Brexit, and as a result the pound is once again on the up against the dollar. The GBP/USD price has rallied back to the $1.357 area that marked the closing highs last week, and further gains target $1.366.

Dip buyers came in strong last week down towards $1.32, creating a higher low, and the uptrend of the past eight months remains in place.

EUR/GBP tests recent lows

News of a Brexit deal have bolstered sterling, pushing EUR/GBP back to the €0.90 level that has marked the low since the beginning of the month.

This month has seen several long wicks on the daily chart, as sellers continue to bear down on the price and keep it from rallying. A move below €0.895 would certainly mark a more bearish development, and bring €0.885 into view.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.8 pips on EUR/USD
  • Analyze market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on the most popular forex markets


Prices above are subject to our website terms and agreements. Prices are indicative only

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading forex provider.

Stay on top of upcoming market-moving events with our customisable economic calendar.