GBP/USD bulls stay on top with vaccine and Brexit hopes


  • GBP/USD consolidates in the holiday thin markets in positive territory. 
  • Brexit remains the key driver and bulls expecting a vaccine will boost economic recovery hopes. 

GBP/USD is currently trading at 1.3357 between a range of 1.3321 and 1.3397 following a last-minute bid until ultra-thin markets kicked-in.

It is Thanksgiving today so markets are quiet and price action is non-existant in the North American shift.

However, for the week, the pound is the best performing G10 currency on a 1-day view.

Brexit is the focus

Brexit related optimism and prospects of a recovery in the UK economy with the hopes of a vaccine for the coronavirus have been the foundation to sterling's success. 

On the Brexit front, a skeleton trade deal between the EU and the UK appears to be priced in, analysts at Rabobank argued. 

''A skinny trade deal potentially focused on the manufacturing sector would be billed as a victory by both sides.''

In other observations, the analysts noted that the reassuring headline in the Telegraph that PM Johnson is expected to talk with European Commission President von der Leyen in order to clear the final barriers, other reports are less optimistic.

''UK sources are also reported as suggesting that “Johnson will not water down his demands in order to get a deal”.  This would appear to refer to the problematic issues of fisheries and the level playing field.''

''PM Johnson is treading a difficult path. His Brexit credentials mean that it will be difficult for him to backtrack on the issues of fisheries or a level playing field and keep his credibility intact,'' the analysts explained.  

Meanwhile, the latest is that Michel Barnier will to talk to ‘some’ EU fisheries ministers tomorrow to discuss the state of play in Brexit talks.

Fisheries have been a key sticking point in negotiations to reach a post-Brexit trade deal.

The EU has played down the importance of this meeting but it comes amid uncertainty over whether trade talks between the EU and the UK will be held in person this week.

Barnier had reportedly been due to come to London to resume face-to-face trade talks tomorrow but asked if they were expecting him, a Downing Street spokesperson said: "that's a matter for the EU and a decision for them".

GBP/USD

Overview
Today last price 1.3357
Today Daily Change -0.0035
Today Daily Change % -0.26
Today daily open 1.3392
 
Trends
Daily SMA20 1.317
Daily SMA50 1.3026
Daily SMA100 1.3006
Daily SMA200 1.2725
 
Levels
Previous Daily High 1.3394
Previous Daily Low 1.3305
Previous Weekly High 1.3312
Previous Weekly Low 1.3166
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.336
Daily Fibonacci 61.8% 1.3339
Daily Pivot Point S1 1.3333
Daily Pivot Point S2 1.3274
Daily Pivot Point S3 1.3244
Daily Pivot Point R1 1.3422
Daily Pivot Point R2 1.3452
Daily Pivot Point R3 1.3511

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD rises above 1.21 amid better market mood

EUR/USD has been extending its gains, recapturing 1.21 as the market mood improves. The German ZEW Economic Sentiment beat estimates with 61.8 points. Treasury Secretary nominee Janet Yellen's testimony is awaited.

EUR/USD News

GBP/USD clings to 1.36 ahead of Yellen's testimony

GBP/USD is edging above 1.36 as markets eagerly Treasury Secretary nominee Janet Yellen's testimony. The UK parliament is set to process the Brexit deal as Britain ramps up its vaccination campaign.

GBP/USD News

Gold recovers further from multi-week lows, climbs to $1845 region

Gold gained positive traction for the second consecutive session on Tuesday. A modest USD pullback was seen as a key factor that benefitted the metal. The risk-on mood, rallying US bond yields might cap gains for the commodity.

Gold news

Breaking: Ethereum explodes to new yearly high, validating upward price action

Ethereum has ascended to new yearly highs after breaking the recent peak achieved in January. The flagship altcoin is trading at $1,372 amid the push for gains eyeing $1,400. 

Read more

US Dollar Index: Downside pressure alleviated above 91.00

DXY met sellers in the 91.00 neighbourhood on Monday and now retreats to the 90.50 region on turnaround Tuesday.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures