The pound to rand (GBPZAR) pair is up by 0.40% as investors remain optimistic about Brexit negotiations agreement. The pair is up trading at 21.5786, which is higher than this week’s low of 21.2460. Similarly, the USDZAR and EURZAR are up by 0.97% and 0.72%, respectively.
The South African rand is generally weaker today because of the rising number of Covid-19 cases in the United States and other developed countries. While the South African cases have been relatively stable, investors believe that developed countries currencies are better to have than those from the emerging markets. Indeed, other EM currencies like the Turkish lira, Brazilian real, and Mexican peso have fallen today.
The pound to rand price has also gained because of the rising optimism about Brexit as the EU summit goes on. While Boris Johnson was expected to abandon talks today, sources in his government have confirmed that he will not. This is because the main divisions between the two sides have narrowed to just three: fisheries, level playing field, and government support. David Frost, his chief negotiator has said that these differences can be narrowed down.
Pound to rand technical outlook
The four-hour chart shows that the GBPZAR price has been rising and is along the upper side of Donchian channels. The price has also moved above the first support of the standard pivot point to the current 21.5786. The current price is a few points below the first resistance level of these pivot points.
Therefore, I suspect that the price will continue rising as bulls aim for the first resistance at 21.7179. On the flip side, a move below the pivot at 21.4530 will invalidate this trend.