The GBP/USD pair is rallying today as traders react to the latest news on Brexit. The GBPUSD is trading at 1.3560, which is sharply higher than this week’s low of 1.3187.
What’s happening: The pound sterling is rising as investors wait for a potential deal between the United Kingdom (UK) and the European Union (EU). The two sides are expected to reach a major deal after months of negotiations. That happened as the two sides made concessions on the key outstanding issues.
Why it matters: The UK is set to completely part ways with the European Union on December 31st. To do this, it needs to have a deal that will prevent new tariffs.
As a result, the two sides have been holding intense negotiations with hopes of a deal. In recent months, the main issues have been about fishing and fair trade agreements.
Therefore, a deal means that the two sides will continue doing trade as usually, which will not have a major impact on the British economy.
What else: The GBP/USD is also rising because the US dollar is under pressure today. That’s because of the recent weak economic numbers from the United States, including durable goods and consumer spending.
GBP/USD technical outlook
The daily chart shows that the GBP/USD price has been in a strong trend after reaching a low of 1.3190 on Monday. The price is above the ascending blue trendline and is slightly below the upper side of the rising channel. It is also being supported by the 25-day exponential moving averages.
Therefore, we suspect that the pair will continue rising as bulls aim for the next resistance at 1.3600. However, a move below this week’s low of 1.3190 will invalidate this trend.
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GBPUSD technical chart
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