GBP/USD may have good supports between 1.2691 and 1.2726 – CitiBank
Moves around the GBP are likely to be extremely choppy in short term, as United Kingdom’s local fears continue to be dominated by rising virus cases and tumultuous trade negotiations in light of the internal markets bill, point out analysts at Citibank. They see that a Brexit deal remains more likely than not over the coming weeks, but they warn the risk of no-deal has increased.
Key Quotes:
“Brexit is re-emerging as a key driver for GBP, with the controversial new ‘UK Internal Market Bill’ raising concerns about no-deal Brexit once again. As a result, GBP has started to depreciate. Meanwhile, the UK has already been lagging behind peers in terms of the economic recovery. In terms of monetary policy, Citi’s view is that the MPC will cut to 0% at the November MPC and add £50bn QE.”
“GBP/USD may have good supports between 1.2691-1.2726, which are fibo 0.618 level, Feb low, 100&200MA supports. Resistances may find at 1.2993 and 1.3200 respectively.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
