GBP/USD Up on Agreement

The Sterling was trading to the downside yesterday and the day before going from a high of 1.3380 to a low of 1.3223. The downtrend was going smoothly as the pair was reaching new lows when all of a sudden the news broke out that the UK has reached an agreement with Europe regarding the Brexit.

The Telegraph has issued the news not stating any reasioning or details behind the deal but the market was quick to react and bought heavily into the UK currency.

That drove the price of GBP/USD to this morning's high of 1.3429. If the news turn out to be long term positive for the Sterling, then we might see a break above the long term resistance at 1.3450. Otherwise, if this ends up as unimportant, the market will disregard it and the Sterling will again be on its way down.

Chart: GBP/USD H4