GBP/USD Analysis: Ascending channel resistance capped gains, bullish potential still intact
The GBP/USD pair gained some strong positive traction on the first day of a new trading week and shot to the 1.3400 neighbourhood, or the highest level since September 2. The British pound was well supported by the prospect of a last-minute Brexit deal and got an additional boost from better-than-expected UK PMI prints for November. Bulls largely shrugged off not so optimistic comments by the EU chief Brexit negotiator Michel Barnier, saying that fundamental differences remain in the trade talks with the UK.
On the other hand, the US dollar remained depressed through the first half of the trading action on Monday on the back of the positive news of successful COVID-19 vaccine trials. Apart from this, speculations that the Fed might ease monetary policy further in December – amid concerns about the economic fallout from the continuous surge in new coronavirus cases – exerted some additional downward pressure on the greenback. However, a late pickup in the USD demand kept a lid on any further gains for the major, rather prompted some selling at higher levels. Read more...
GBP/USD Forecast: The good is likely to beat the bad and the ugly, bullish breakout eyed
More upside than downside – but is it sufficient to break above 1.34? Monday's upside move failed to break that round level, but sterling has another chance. There are several moving parts that can be categorized into The Good, The Bad, and The Ugly.
The good – Three factors
Vaccine: AstraZeneca and the University of Oxford published promising results from their Phase 3 coronavirus vaccine trial. While the different dosage figures caused some confusion, markets are more optimistic now and await the final figures. The British-grown immunization scheme is the third out of three vaccines and emergency authorization is likely in the UK as early as next week. Read more...
GBP/USD refreshes session tops near 1.3380 region, eyeing overnight swing highs
The USD selling bias picked up pace during the early European session and pushed the GBP/USD pair to daily tops, around the 1.3375-80 region in the last hour.
Following the previous day's intraday pullback of around 65-70 pips, the pair managed to regain traction on Tuesday and was being supported by a combination of factors. As investors looked past Monday's upbeat US PMI prints, speculations for additional monetary policy easing by the Fed prompted some fresh selling around the US dollar. This, in turn, was seen as one of the key factors driving the GBP/USD pair higher. Read more...
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