GBP/USD Signals Update
Yesterday's signals expired without being triggered.
Today’s GBP/USD Signals
No signal is given today.
GBP/USD Analysis
I wrote last Thursday that we were probably due a move up to fill the gap from the previous weekend at 1.6280. This is more or less what happened during the final two days of last week, although we were just a couple of pips short of the gap being filled. Since the market opened last night, the price has been gently descending, but as usual at the London open on what will most likely be a quiet Monday, not to any significant level.
As my colleague Christopher Lewis points out, the market in this pair is currently being driven mostly by the GBP, and that is being driven by the prospects for the Scottish referendum on independence from the U.K. which will take place this coming Thursday. A vote in favour of independence will drive the GBP down, particularly against the USD which is the strongest global currency at the moment, as it has been for some time. A vote in favour of remaining part of the U.K. will probably trigger a recovery in the GBP, sending this pair upwards. Recent fluctuations in this pair have noticeably been driven by fluctuations in new opinion polls as they are released. At the moment, the polls are showing a relatively narrow but positive margin for remaining in the U.K. In short, to a large extent, technical factors are taking a back seat right now.
Having said that, we did bounce up off crucial support at 1.6067, where there was probably a lot of buying, so watch out for a bounce up if the price drives down there again. It is probably that very little will happen today.
There are no high-impact events scheduled today concerning either the GBP or the USD. Therefore today should be a very quiet day for this pair.