GBP/USD: The major thing holding down the pound is Brexit

GBP/USD is held back by growing Brexit uncertainty while the US dollar remains on the back foot amid dovish Fed minutes. Thanksgiving's 4-hour chart is showing a bullish ascending triangle but a bullish breakout hinges on Barnier's London trip, FXStreet’s Analyst Yohay Elam reports.

Key quotes

“Serling's next moves seem to heavily depend on the travel plans of Michel Barnier, the Chief Brexit Negotiator for the EU. Barnier is set to end his quarantine – needed after a team member tested positive for coronavirus – and travel to the British capital for face-to-face talks. However, media reports suggest that he may call off his trip if the UK does not offer concessions. Investors need to see negotiations continue to remain hopeful.” 

“London remains in focus for pound traders due to the new tiers for coronavirus-related restrictions are set to be announced later in the day. The capital will likely return to the second level that it was at before the nationwide lockdown. If more significant limitations are imposed on the city, sterling could shiver.”

“Americans are celebrating a relatively somber Thanksgiving, amid rising coronavirus cases, hospitalizations and deaths. Moreover, while the big bulk of data released on Wednesday can be characterized as mixed, the back-to-back increase in jobless claims is a cause for concern and weighs on the greenback.”

“The most significant dollar downer came from the Federal Reserve. Minutes from the latest meeting showed that members actively discussed the bond-buying scheme, potentially readying an increase in its size.”

“Pound/dollar continues trading in an ascending triangle – a bullish technical pattern. Attempts to break above the ceiling of 1.3397 have been unsuccessful, yet there is still room for a breakout. Above 1.3397, the next cap is 1.3420, followed by 1.350. Support awaits at the daily low of 1.3350, followed by 1.3310, a resistance line from mid-November.”


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.


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.


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 looks side-lined near 90.70

The greenback, when tracked by the US Dollar Index (DXY), appears to have moved into a consolidative range around the 90.70 level following the closing bell in Asian markets.

US Dollar Index News