GBP/USD struggles for direction, remains capped below 1.3000 mark
The GBP/USD pair lacked any firm directional bias on Friday and seesawed between tepid gains/minor losses through the early part of the European trading session.
Following the previous day's intraday volatility, the pair now seems to have stabilized near the top end of its weekly trading range. The overnight 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, extended some support to the British pound.
This coupled with the prevalent selling bias surrounding the US dollar further collaborated towards limiting the downside for the GBP/USD pair. Doubts over the sustainability of the US economic recovery kept the USD bulls on the defensive. The market worries resurfaced following the release of Thursday's rather unimpressive US macroeconomic data. Read More...
GBP/USD to attack the psychological 1.30 mark
GBP/USD is trying hard to extend the recovery as Friday's 4-hour chart is showing an improving picture for the bulls. Yohay Elam, an analyst at FXStreet, notes that the cable needs to surpass the psychological 1.30 level to continue the rise on a strong foot.
Key quotes: "Momentum on the 4-hour chart is positive, and the currency pair topped the 50 Simple Moving Average, both bullish developments. However, GBP/USD is still trading below 1.30 – which is not only a psychologically significant level but also a stubborn separator of ranges." Read More...
GBP/USD has more room to rise than fall, specter of a British lockdown may limit gains
GBP/USD has been rising amid fresh Brexit hopes and despite the Bank of England's dovish shift. On Friday, speculation about a new UK lockdown and data on both sides of the pond are eyed, FXStreet's analyst Yohay Elam reports.
Key quotes: "‘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 PM Boris Johnson compromised with members of his Conservative Party after they expressed concerns about a controversial piece of legislation." Read More...
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