GBP/USD’s recovery from 1.3190 stalls right below 1.3300

The sterling has traded higher on Friday, extending its rebound from Thursday’s lows at 1.3195 to session highs a few pips shy of 1.3300 where bulls h  |  20/11/2020 20:03
  • GBP/USD regains lost ground to reach levels right ahead of 1.3300.
  • Upbeat comments from Brexit negotiators buoy the pound.
  • GBP/USD likely to extend past 1.3280 - UOB.

The sterling has traded higher on Friday, extending its rebound from Thursday’s lows at 1.3195 to session highs a few pips shy of 1.3300 where bulls have lost steam. The pair, however, remains steady above 1.3260.

Pound advances on hopes of a Brexit deal

The pound has gained about 0.25% so far on Friday, buoyed by a more upbeat view about the outcome of the Brexit negotiations. European Commission President, Ursula van der Leyden has boosted market sentiment earlier today affirming that she has observed “better progress” over the last days, with more movement on “important files”.

Van der Leyden’s remarks have been confirmed by comments of EU and British representatives, suggesting that the positions are getting closer and that the deal might be imminent.

On the macroeconomic front, UK retail sales have shown a 1.2% monthly increase and a 5.8% year-on-year growth in October. This is the sixth consecutive increase in retail consumption, which proves the resilience of the sector in times of coronavirus and has contributed to increase confidence in the GBP.

GBP/USD extra gains beyond 1.3280 are likely – UOB

The FX analysis team at UOB sees the pound biased higher with room for a further rally past 1.3280: “GBP ‘has to move and stay above 1.3380 within these 1 to 2 days or a break of 1.3160 (no change in ‘strong support’ level) would indicate that GBP is not ready to move above 1.3322’. GBP subsequently dropped to 1.3198 before rebounding strongly to end the day little changed at 1.3265 (-0.02%). Upward momentum continues to wane and unless GBP can maintain a foothold above 1.3280 within these 1 to 2 days, the prospect for a move above 1.3322 would diminish quickly.”

Technical levels to watch

 

Share

Popular News

Show More Popular News

TheFXApp's Views

TheFXApp analyses will provide both fundamental and technical comprehensions on finance
and other asset classes for TheFXApp viewers

Back

Login to TheFXApp Account

Your TheFXApp account gives you access to the tools that we offer our customers including our
Technical Studies & Sentiment for your accounts.

Forgot Password?

Don't you have a TheFXApp account? With a few easy steps you can easily register to TheFXApp

Create a TheFXApp's Account

Your TheFXApp account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

register_ty

Thank you!

Welcome to TheFXApp family!

You have succesfully completed the registration.
We will send you an e-mail to give you some
instructions and our Terms and Conditions!
Our account representatives will be contacting you as
soon as possible. If you have any further questions
please do not hesitate to mail us via info@thefxapp.com