GBP: two factors

GBP: two factors

2020-07-22 • Updated

The GBP is pretty much in a roller coaster now.

From the downside, it has the hopes for the successful and nearing Brexit deal pushing it upwards. We have to note that it is more hopes than anything else. So far, the process is quite slow, and the sides are both pretty unsatisfied with where it goes. So whether there will be a deal on time is still a question. That’s why, although the hopes are there and keep supporting the GBP, this factor cannot be taken as a reliable upward driver – at least, until there is more concrete progress with Brexit.

From the upside, the GBP is under pressure due to quantitative easing measures which are still underway. That means, in the mid-term, there will be at least one firm factor pressing on the GBP and limiting its bullish advances.

With both factors combined together, we have a sporadic-looking tactical sideways movement of the GBP as in the chart below. Technically, it can go down to touch the key support of 1.2500 or descend lower to the channel border somewhere below 1.2450. Eventually, it is likely to go up again though, so decided where you go short-term (bearish) or long-term (bullish) with GBP/USD.

GBPUSDH4.png

                                                                                                  LOG IN

Similar

Gold & Silver Continue to Fly

US stocks are set to weaken at the open today, consolidating after gains in the previous session, with investors wary amid few signs of progress over the next virus relief bill.

Latest news

NFP Number Will Drive Markets

US stocks are set to open lower Friday, with investors worry over rising tensions between the US and China, deadlock over the next virus relief bill and possible disappointments from the key monthly employment report.

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

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in 00:30:00

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