GBP / USD pair resumed its downward movement today. Investors remain concerned about the epidemiological situation in the country and the lack of progress in trade negotiations with the EU.
To prevent the spread of the new COVID-19 B.1.1.7 strain, the authorities decided to completely isolate (level 4) London and the south-east of the country. The country could start having problems with transport logistics and food supply disruptions just days before Christmas and the UK's exit from the EU.
Other EU countries, Canada, Australia, Hong Kong, etc. introduced a travel ban on British citizens to limit the spread of B.1.1.7.
Considering the recent events, negotiations between the UK and the EU temporarily faded into the background, but against the background of increasing quarantine in the country, this problem is again coming to the fore. Earlier, some experts predicted disruptions in the supply of food and other goods in the event of a tough Brexit scenario. Now the situation is further exacerbated by the tough quarantine restrictions in the UK. While the parties were unable to resolve the controversial issues of trade negotiations. While the uncertainty around Brexit persists, the GBP / USD pair will remain under pressure.
The UK released its final third-quarter GDP estimates today. In annual terms, the indicator fell by 8.6%, against the forecast of -9.6%. The quarterly indicator increased by 19.0% against the forecast of -18.5%.
On the chart, the price reacted quite strongly to the resistance level 1.3500. Today we are waiting for the development of the downward movement in the direction of 1.3285.
The main scenario is a decline to 1.3285.
An alternative option is a breakdown of resistance at 1.3465 and growth to 1.3550.
The current fundamental outlook is moderately negative. We consider shorts from the level of 1.3465.
Only from November 02nd, 2020, to January 04th, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! 🏆 Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts 📍 How to get the bonus: 1) Register an […]