GBP: gaining versus others currencies

GBP: gaining versus others currencies

2020-08-14 • Updated

Fundamentals

The British pound surged higher amid the optimistic news of the upcoming Brexit agreement. Recently, David Frost, the chief EU-UK negotiator, claimed that the deal may be done in September. Just to remind you, the deadline is scheduled for December 31. Meanwhile, it’s always the EU, which makes final decisions. The UK had already broken the promise to end Brexit talks in July. Therefore, the EU’s initial deadline for October seems more realistic. Elsewhere, two countries still have some disputes over the fishing waters, the UK’s sovereignty, the country’s laws and courts. Nevertheless, the fact that the Brexit agreement may be reached earlier than the deadline has calmed the market.

Moreover, the coronavirus has been taken under control in the United Kingdom, unlike other European countries, that recorded increasing infections. The UK was one of the last ones to impose a lockdown, but it kept strict restrictions for longer time. Thus, now when businesses have reopened, the British economic activity should improve significantly in the second part of the year and may even outperform other countries. Let’s look at the charts.

Technical tips

GBP/USD is trading above 1.3000. There is an initial resistance near the 1.3120 level, the pair bounced off this level several times. If GBP/USD breaks it through, it may surge to the next resistance at the high of August 6 at 1.3160, which the pair has failed to cross two times already. On the flip side, if the US dollar gets stronger, the pair may fall to the yesterday low at 1.3050. The move below this level will push the price lower to the support line at 1.3020. Follow further news!

GBPUSDH4.png

TRADE NOW

Similar

All attention to Biden's inauguration
All attention to Biden's inauguration

Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!

Latest news

Oil dropped on weak demand
Oil dropped on weak demand

Oil fell below $52.00 because investors expect a weaker oil demand amid rising Covid-19 infections and new lockdowns.

USD strength on risk off mood
USD strength on risk off mood

Asian equity markets traded cautiously after the mixed lead from Wall St where most indices stalled at record levels

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera