- The GBP / USD four-day rally hits resistance at 1.3315.
- The pound is appreciating in hopes of an imminent Brexit deal.
- GBP / USD could hit 1.3474 / 1.3514 – Credit Suisse.
The pound It appreciated for the fourth day in a row on Wednesday, fueled by higher hopes for a trade deal with the EU. The pair, however, was rejected at 1.3315 for the second time in the last two weeks before returning to the 1.3285 area.
Hopes of the Brexit deal are boosting the pound
Investors are a bit more optimistic about the possibility of a last minute deal with the EU, which has been reflected in a much stronger pound this week. The departure of top UK government adviser and hardliner Brexiter Dominique Cummings and positive comments from some negotiators have increased confidence that a tough exit from the Union can still be avoided.
In addition, the pharmaceutical giant Pfizer has revealed that the COVID-19 vaccine developed together with BioNTech is 95% effective, with a 94% success rate in adults over 65 years of age. This news, combined with the promising results published by Moderna earlier this week, has allayed fears about rising infections and has given the pound a new boost on the grounds that the UK is one of the world’s leading countries. affected from Europe.
On the macro front, British consumer inflation accelerated 0.7% year-on-year in October, modestly above the consensus consensus of 0.6%, which could also have contributed to pushing the pound higher during the European trading session.
GBP / USD rally could extend to levels beyond 1.3500 – Credit Suisse
Credit Suisse’s currency analysis team sees the pair breaking out of the 1.3315 resistance area and possibly extending to 1.3500: “Beyond 1.3310 / 19 it should reassert the rally for a move to 1.3403 / 09 below and eventually return to price. long-term and neckline resistance. ” at 1.3473 / 1.3514. Above here, what we eventually look for is necessary to see a major base secured, clearing the way for a move above 1.4300 ”.
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