We use cookies to offer a better browsing experience, analyze site traffic, personalize content, and serve targeted advertisements. By clicking accept, you consent to our privacy policy & use of cookies. (Privacy Policy)

GBPUSD Spikes on Brexit Deal Hopes

FTSE 100
FTSE 100

The British Pound (GBPUSD) rose sharply at 09:15 London time on The Times reporting that diplomatic sources near to the Brexit negotiations said that the Northern Irish assembly might be given a mechanism for leaving a potential backstop after a certain number of years. If this is true, then it will help PM Johnson to land a deal.

The Financial Times has also reported Boris Johnson will struggle with his no-deal Brexit view in the case of a general election, as the FT says that at least fifty Conservative PMs would revolt in the coming general election. If the Conservatives pivot for a softer Brexit, then that would help the GBP, on the other hand, it will strengthen the Brexit Party.

Don’t miss a beat! Follow us on Telegram and Twitter.

Yesterday the GBPUSD pair reached the October 1 low of 1.22 as I have been projecting since early October when I said that traders would probably short GBPUSD between 1.2386 and 1.2503 to target 1.22.

Today, the trend remains bearish below the October 3 high of 1.2422, and if the price was to revisit the 1.2300 to 1.2422 interval, then I think traders will see this as an opportunity to short-sell the British pound with a target of 1.21. However, if the price were to trade above the October 3 high, then traders might target the next resistance level, the September 24 high of 1.2504.

For more on the short-term technical levels that traders are watching, watch our daily morning Brief video below.[vc_video link=”https://www.youtube.com/watch?v=CGYZ1kKc6E0″ title=”Morning Brief”]Download our latest quarterly market outlook for our longer-term trade ideas.

Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.