GBP/USD Highest Since May 2018, Uptrend Intact

GBP price, news and analysis:

  • GBP/USD continues to storm ahead, reaching its highest level since 2018.
  • Moreover, its long-term trend higher remains in place, suggesting even more gains to come.
  • This is not just about “risk-on” sentiment in the markets generally; GBP is also strong independently against other currencies such as the Euro.

GBP/USD still trending higher

Further long-term gains in GBP/USD are looking increasingly likely after the pair hit its highest level since May 2018 and continues to climb within a well-defined channel on the weekly chart.

GBP/USD Price Chart, Weekly Timeframe (February 26, 2018 – January 27, 2021)

Source: IG (You can click on it for a larger image)

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Other currencies such as AUD, NZD and CAD have also benefited from a risk-on tone in the markets based on vaccine rollouts, the prospect of a substantial US pandemic relief program, an upgrade by the IMF of its 2021 growth forecasts and a decline in new Chinese Covid-19 cases.

However, GBP continues to outperform some of its rivals, as the EUR/GBP chart below shows.

EUR/GBP Price Chart, Daily Timeframe (March 4, 2020 – January 27, 2021)

Latest EUR/GBP price chart

Source: IG (You can click on it for a larger image)

Here too, GBP is well placed for further gains after a break to the downside in the pair.

of clients are net long.

of clients are net short.

Change in Longs Shorts OI
Daily -4% 9% 1%
Weekly -20% 20% -8%

We look at currencies regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts

— Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

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