Monday, November 16, 2020

Even though the pound is at risk, GBP / USD continues its gains towards 1.33000

 Pound Sterling is seen victorious moving stronger than the US dollar at the beginning of this week continuing the gains at the end of last week although still overshadowed by Brexit uncertainty.

Ireland's Minister of Foreign Affairs, Simon Coveney stated that the two parties still did not reach an agreement regarding water rights and added that, if the market range is passed in the UK, the opportunity for negotiations to be achieved will be closed.

On Sunday, the UK's Brexit chief negotiator, David Frost, said the UK would not move away from its stance in reaching a joint European Union (EU) agreement.

On the chart of the GBP / USD currency pair, prices are seen as continuing their gains earlier in the week with a surge in the early Asian session taking over the 1.32000 profile.

Initial signs of rising prices were seen by investors at the end of last week after prices moved up above the Moving Average 50 (MA50) support level on the 1 hour frame.

The price increases will be targeted towards the resistance zone 1.33000 which failed to be broken when tested last week.

However if the pressure continues to increase on the Pound currency, the price is likely to fall back lower below the 1.31500 level.

The price support zone is seen at around 1.30600 onwards at a pedestal of 1.30000 for lower price cuts.

Investors will be leaning on UK inflation data this week to assess user spending activities which will affect Pound trading.