GBP/USD bulls hold the fort as US Dollar stays soft
GBP/USD is flat in Asia as markets consolidate the opening range and US "Dollar softness that kicked in at the start of the week. At the time of writing, GBP/USD is trading at 1.2065 and has stuck to a 1.2042/67 range so far. Sterling is up from a 7-week low due to not only US Dollar weakness but also following British Prime Minister Rishi Sunak signing a new trade deal with the European Union.
The Northern Ireland Protocol has been a factor playing into the Pound's trajectory in the forex space in recent days while a new agreement, known as the Windsor Framework, has been drawn out between the two sides. The agreement is designed to safeguard trade flows within the UK, protecting Northern Ireland’s place within the UK. However, as the Guardian writes, ''the prime minister is obviously not out of the woods. Once the detail emerges, there could be ministerial resignations.'' Read more...
GBP/USD Price Analysis: Bulls stay in control and eye a test of trendline resistance
GBP/USD could be on the verge of a move higher but a retest of the prior resistance could also be in order. The bears are seeking a break of a key daily support structure while the bulls are relying on a move to test trendline resistance.
On a break of daily support, 1.1900, the bias will be on the downside with the price below trendline resistance. This would mark a bearish head and shoulders with the price below the neckline. Read more...
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