GBP/USD Forecast: Fresh attack on 1.30? lockdown risks loom, Brexit brings hope
"I am convinced a UK-EU deal is still possible" – These words by European Commission President Ursula von der Leyen have given sterling another boost.
The pound was already on an upward path after Prime Minister Boris Johnson compromised with members of his Conservative Party after they expressed concerns about a controversial piece of legislation. The PM has allowed greater parliamentary oversight over the Internal Markets bill – which knowingly violates the Brexit accord with the EU.
Additional upbeat news came from August's retail sales figures. Consumption rose by 0.8% on a monthly basis, better than expected. Consumption is up 2.8% yearly, pointing to a V-shaped recovery – at least in shopping. Read More...
GBP/USD bullish price action targeting W H4
The GBP/USD is bullish. We can see the V shaped reversal taking place right above the W H3/D H3 confluence. This is bullish.
1.2935-50 is the POC zone. If the hourly candle makes a close above the D L3 camarilla pivot – 1.2943 we should see continuation to the upside. The first target is 1.3045 followed by 1.3073. Only if the price breaks below the X cross (the trendline and pivot point crossover) around 1.2890 we should see move down towards D L5 camarilla target. Read More...
GBP/USD Analysis: Brexit optimism offset BoE negate rate talks, 1.3000 holds the key for bulls
The GBP/USD pair had some good two-way price swings on Thursday and was influenced by a combination of diverging forces. The pair witnessed some aggressive intraday selling after the Bank of England surprised investors by saying that it had briefed policymakers on how negative interest rates could be implemented. Earlier, the BoE left its benchmark interest rates and the Asset Purchase Program unchanged at 0.10% and £745 billion, respectively. The UK central bank highlighted the risk of a longer period of elevated unemployment and uncertain growth outlook. This, in turn, took its toll on the British pound and dragged the pair to two-day lows, around the 1.2865 region.
The pair, however, quickly changed course and rallied back closer to the key 1.3000 psychological mark in reaction to optimistic Brexit-related comments by the European Commission President Ursula von der Leyen, saying that a trade deal between the EU and the UK is still possible. This coupled with the emergence of some fresh USD selling further collaborated to the pair's solid rebound of over 130 pips. Read More...
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