- GBP / USD reaches 1.3260 and turns positive on the day.
- Brexit fears are controlling the longs of the pound.
- GBP / USD is still looking towards 1.3300 and above – UOB.
The pound sterling It has erased previous daily losses, after bouncing around the 1.3200 zone, returning towards 1.3260 and turning positive on the day as the US dollar recovery loses momentum.
Brexit fears are limiting GBP longs
The pound faltered in Thursday’s Asian and European trading session, testing support at 1.3200, after The Times newspaper reported that Macron and other EU leaders urged the European Commission to publish no-deal plans as they are Dec. 31 deadline is approaching.
Beyond that, risk sentiment triggered by pessimistic news about the COVID-19 death toll in the US 250,000, and the growing number of infections reported by Japan and Russia has added negative pressure on the sensitive pound. to risk.
The US dollar appreciated across the board during the Asian and European sessions, before losing steam in US trading hours. This has helped the GBP rally from session lows at 1.3200 to 1.3260 to turn higher on the daily charts.
GBP / USD keeps looking at 1.3300 and above – UOB
The UOB currency analysis team remains positive on the pound and does not rule out a bullish extension to 1.3322: “The GBP rose to a high of 1.3312 yesterday (Nov 18) before falling again to close at 1.3268. Short-term momentum has deteriorated and the outlook for the British pound to move clearly above 1.3322 has diminished. To revive the current momentum, the GBP has to move and sustain above 1.3380 within this 1-2 days or a breakout of 1.3160 ​​(no change at the ‘strong support’ level) would indicate that the GBP is not ready. to move above 1.3322. ”
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