U.S. stocks are seen opening mixed Thursday, pausing around record highs as investors await more fresh news on Covid-19 vaccines and potential fiscal stimulus.
GBP/USD: at the dawn of a new era?
2020-11-19 • Updated
The pound has been pretty strong lately. Possibly, on the latest “news” (that’s been like that since summer though) that by early next week we may finally see the Brexit deal sealed. So on the surface, just watch the resistance of 1.33 for bulls, and 1.3220 for bears. But that’s not the most interesting thing.
The zone of 1.3230 – 1.33 is the two-year resistance area for GBP/USD, it’s very clearly visible on the weekly chart below. We haven’t noticed with this virus that the pound gradually recovered all the virus losses and is on the brink of breaking this resistance. What is up there, beyond 1.33?
Beyond 1.33, it is a game-changing scenario of GBP/USD building a new long-term uptrend. The first strategic high on the way would be 1.43, and then, all those heights left by the pound in the course of this decade. Unexpected, isn’t it? That’s right – that’s what an every-now-and-then strategic view gives. So watch how Brexit goes, follow the course of the UK economic recovery, and let’s see – maybe, we are at the opening of the new era for the pound.
A tentative mood was seen in Asia-Pacific bourses following the flat performance on Wall Street, whilst Chinese Caixin Services PMI printed its second-highest reading in a decade.
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