British Pound (GBP) Latest: Sterling Rallies, FTSE Crashes Below 5,000
Sterling (GBP) and FTSE 100 News, Prices and Analysis:
- FTSE 100 nears a nine-year low.
- Sterling (GBP) off its multi-month lows.
British Pound (GBP) Looks Extremely Oversold
Sterling has pulled off Friday’s multi-month lows after the US Federal Reserve slashed 75 basis points off its lending rate and announced another round of bond buying (QE) to the tune of USD750 billion. This is the second emergency cut by the Fed in the last two weeks and it comes just days before a scheduled FOMC meting on Wednesday, indicating the emergency of the current situation. It remains to be seen if the Fed’s action will work, but other countries will now need to cut further, and introduce additional liquidity measures, forcing a race to the bottom in the FX market. GBP/USD sold-off sharply on Friday and is currently trying to find some support. The only drivers of price action in the short-term will be coronavirus updates and additional central bank measures.
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GBP/USD Weekly Price Chart (January 2017 – March 16, 2020)
FTSE 100 Roiled, Desperately Looking for Support
The FTSE 100 continues to slump and has losy more than 2,700 points from its peak with indiscriminate selling forcing global equity markets heavily into bear market territory. Again the chart looks oversold, using the ATR indicator, but sitting on the sidelines is the only way to treat this market in the short-term
FTSE 100 Monthly Price Chart (2003 – March 16, 2020)
Market volatility remains at multi-year extremes and traders should know how to handle these conditions before making any decisions. DailyFX have a wealth of risk management and discipline resources available to help guide traders through these volatile times.
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What is your view on Sterling (GBP) and the FTSE – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.