GBP/USD Forecast: Ready for the next leg up? It depends on Brexit hopes overcoming Cummings' scandal
Flying further up with free-roaming fish? While Brits are closely following the latest developments around Dominic Cummings – the special adviser at Downing Street who violated the lockdown – an EU concession around fisheries helped propel the pound higher.
Brussels is reportedly ready to relent on its "maximalist approach" on fishing rights. While the industry is minuscule, it carries substantial political weight. The EU's step may help make progress in talks about future relations, once the transition period ends. Read More...
GBP/USD Forecast: Bulls paused near 50% Fibo. amid escalating US-China tensions
The GBP/USD pair caught some aggressive bids and shot to two-week tops on Tuesday. The positive news of a potential COVID-19 vaccine and hopes for a V-shaped recovery for the global economy provided a strong lift to the global risk sentiment. The upbeat market mood was evident from a strong rally in the global equity markets and weighed heavily on the US dollar's perceived safe-haven status.
On the other hand, the British pound got a strong boost from reports that the EU is willing to drop its ‘maximalist’ approach on fisheries in the next round of Brexit negotiations with the UK, starting next week. This marked the first major concession from the bloc, which helped ease concerns about a deadlock in Brexit talks and prompted some short-covering move around the GBP pairs. Read More...
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GBP/USD Price Analysis: Finds some support near 38.2% Fibo./descending channel confluence region
The GBP/USD pair stalled its overnight strong bullish momentum near the 50% Fibonacci level of the 1.2644-1.2076 recent downfall and witnessed a modest pullback on Wednesday. The retracement slide dragged the pair further below the 1.2300 round-figure mark during the early European session, with bears now flirting with 38.2% Fibo. level support.
The mentioned level coincides with the lower end a downward sloping channel on intraday charts. Given the overnight strong upsurge, the channel seemed to constitute towards the formation of a bullish flag chart pattern. The technical set-up supports prospects for the emergence of some dip-buying, warranting some caution for aggressive bearish traders. Read More...
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