- Pound flat against USD on Friday, down against EUR.
- GBP / USD is heading towards the highest weekly close in months.
The GBP/USD is about to post the highest weekly close since late September. On Friday it maintains gains, trading steady around 1.3130 / 40 as market participants turn their attention to the US elections.
The pair has been trading sideways all day and continues to do so, now testing the highs, above 1.3140 while the US dollar remains weak. The key factor is the American elections. Former Vice President Joe Biden is close to the 270 electoral votes needed to win the presidency. There has been speculation about the possibility of President Trump accepting defeat. That has supported the appetite for risk.
The US employment report beat expectations with a sharp drop in the unemployment rate, even as the labor participation rate increased. The positive figures did not affect the US dollar. Neither did Thursday’s decisions by the Fed and the Bank of England.
Technical perspective
The pound managed to break above 1.3070 during the week but failed at the 1.3150 barrier which is the key level to break to the upside. The bias remains on the upside.
Credits: Forex Street
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