GBP/USD: Here’s Why the Pound Could Soar to 1.3700 Today
The GBP/USD pair is rallying today as investors bless the now independent Britain. The pair is trading at 1.3675, which is the highest it has been since April 2018. The GBPUSD has continued the 4% gains it made in 2020.
What happened: Today is the first trading day for the GBP/USD after the UK managed to leave the European Union. The country left after five years of confusion and tense talks after the leave side won the Brexit referendum.
Now, the focus will be on how the country picks the pieces after its decades-long membership of the European Union. Because of the deal reached in December, the transition will not be all that hard.
However, the country needs to deal with the rising number of coronavirus cases in the country. The total number of new infections has continued to rise even as the country continues to vaccinate its residents.
What next today: The GBP/USD will today react to the December manufacturing PMI from the UK. It will also react to the British mortgage data by the Bank of England and the expectations of the upcoming Georgia run-off election.
GBP/USD technical analysis
On the daily chart, we see that the GBPUSD price has been on a strong upward momentum. It is still above the 25-day and 50-day moving averages and the ascending trendline that is shown in black. The momentum oscillator remains above the neutral line at zero. Therefore, the pair will possibly continue rising, with the next target being at 1.3700.