UK Lockdown Pushing GBP Pairs lower: GBP/USD. GBP/CAD, GBP/AUD

Headline risk is huge this week!!


Over the weekend, PM Boris Johnson announced that the UK will enter a national lockdown from Thursday until December 2nd, when the current local tier system will be used again.  Although restaurants and bars and non-essential stores will close as they did in the first lockdown, schools, colleges and universities, and manufacturing businesses will remain open.  Combine this with Brexit jitters and an expected dovish BOE on Thursday, the Pound pairs are anxious.

For complete analysis of GBP/USD, please see Currency Pair of the Week.


GBP/CAD has been trading in a symmetrical triangle since late July.  Currently the pair is at support in the middle of the triangle at support near 1.7100.  Watch for the pair to trade lower to the bottom, upward sloping trendline of the triangle near 1.7000, especially if Crude Oil trades higher (which means stronger Canadian Dollar, therefore weaker GBP/CAD).

Source: Tradingview, City Index


GBP/AUD was trading higher into mid-October, however with uncertainty surrounding Brexit and strengthening fundamentals in Australia, the pair began moving lower,  Today the pair briefly pushed through horizontal support near 1.8320 and bounced, currently holding that level.    If the pair does break lower, next support is near 1.8250, which is the 50% retracement level from the lows of October 14th to the highs of October 20th.  Short term horizontal resistance is near 1.8360, then the previous highs at 1.8525.

 Source: Tradingview, City Index

As mentioned in the Currency Pair of the Week, please be sure to trade GBP pairs lightly this week, with tight stops and small size.  Headline risk is huge this week!!


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.