GBP/USD is trading to the upside this week as market participants' expectations improve but yet remain cautious about the forthcoming negotiations with the European Union on the Brexit talks. Some researchers predict a catastrophic scenario for the Sterling if they fail to reach an agreement. A fail indeed remains as an option which could actually push the Sterling some 15 cents lower against the US dollar.
On the other hand, however, traders and investors are on the accelerator anticipating that a consensus will be reached and the UK currency will have its chance to appreciate against the dollar.
Whatever the case, current market momentum is predominantly bullish ever since the beginning of the year climbing from 1.19 in January to its highest high at 1.36574 in September.
Chart: GBP/USD H4
It bounced from the resistance at 1.3340.
ReplyDeleteThank you for the assessment.
ReplyDeleteLet’s see how it keeps going.
ReplyDeleteThe recovery was short lived.
ReplyDeleteGood assessment!
ReplyDeleteIt did bounced back last Friday, but showing no directional strength for now.
ReplyDelete