GBPUSD was stronger on Thursday as the U.S. election result drags on and the Federal Reserve Chair Jerome Powell called for further stimulus. Traders are in the dark about the election as voting continues and legal challenges are launched by Donald Trump’s campaign.
The Federal Reserve held interest rates steady and avoided any adjustments to their current asset purchase scheme, but Chair Powell urged Congress to continue with additional stimulus plans, saying:
“Further support is likely to be needed to avoid further spread of the virus and help individuals who, with the expiration of the CARES Act payments, are seeing their savings dwindle.”
The U.S. election is being held up by counting in some Democrat swing states and the Trump campaign is launching legal battles in an effort that may see the process end up in the Supreme Court. The Trump team are calling for the courts to intervene and pursue evidence of potential voting irregularities.
The pound has done well to strengthen against the dollar after the Bank of England increased their own stimulus by £150bn this week and the country remains in lockdown for a month at least.
GBPUSD Technical Outlook
The GBPUSD is testing resistance at the 1.3150 level and a pause here could see the pair higher next week. A close above the resistance line would be preferred but we also have election risk in the headlines so a tight stop would be needed. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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GBPUSD Daily Chart
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