Forex Trading EURGBP Post BoE Interest Rates. US Indices Fall on Tariffs: Buy the Dip?

In today’s GCI Market Outlook, let’s take a look at Forex Trading on the FTSE100, GBPUSD, the DAX40, and the S&P500.

Yesterday, we saw a fall in price action on indices worldwide on the back of US tariffs kicking in.

Is it time to buy the dip?

The 4-hour S&P500 shows that price action reversed at the lower trend line.

This is, of course, a fundamental trade, but the technicals show us an oversold stochastic oscillator and MACD attempting to return to bullish.

We are seeing similar price action on the other US indices.

The DAX, as well, fell yesterday, but the uptrend looks like it will continue and our stochastic oscillator is clearly oversold and has turned up.

We had seen a period of USD weakness since mid-January and a pull back last month.

Now, with the tariff threats and a possible dovish Fed chair, we may see a weaker dollar.

We will need to see a break of the upper trend line and a break of resistance, and I encourage you to monitor all the USD charts, and the news of course.

Yesterday, the BoE voted to lower interest rates but with a very narrow majority.

Andrew Bailey was noncommittal on further rate cuts, and GBP rose against all other currencies.

For example, we see a huge drop in price action on EURGBP and an oversold stochastic oscillator.

Check other time frames, however, as the picture might not be as optimistic.

And, curiously, the FTSE 100 went down even though the UK lowered interest rates.

This tells us a lot about the state of the UK economy and tariff fears.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.