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2020-12-17 • Updated
GBP/USD has just broken the key resistance of 1.3600. What’s next?
The Bank of England has held the last meeting this year, where it left rates unchanged and maintained its pledge for more quantitative easing. The central bank emphasized that the economic outlook is still "unusually uncertain” but mentioned that the vaccine rollout should limit downside risks to the economy.
According to Tony Connelly, RTE Europe Editor, the Brexit agreement may be reached as soon as this weekend. The EU-UK sides made a compromise over the level playing field, but assess to fishing waters remains the mains ticking point.
GBP/USD surged to the 1.3600 level, which was unseen since April 2018. The way up to the next resistance of 1.3650 is clear. If the pair manages to break it, it may rise to the next round number of 1.3700. On the flip side, the move below yesterday’s low of 1.3450 will drive the pair lower to the next support of 1.3400.
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