Tuesday, November 17, 2020

GBP / USD Advances Originally After Positive Brexit Report

 The European session earlier in the week witnessed a decline for the Pound Sterling currency after investors saw an obstacle to the smooth running of the Brexit negotiations.


The Irish Minister for Foreign Affairs delivered negative comments on the water issue which was seen as a factor preventing the negotiation agreement from being reached.


However, the Pound resumed its initial rebound in New York session trading following reports that UK Brexit chief negotiator David Frost has informed UK Prime Minister Boris Johnson to be willing to formalize the talks as early as next week.


In the chart of the GBP / USD currency pair, the price which is seen making a decline in the European session has tested the support for the Moving Average 50 (MA50) on the frame of the 1 hour price.


However, prices again made gains and tested the key 1.32000 face before closing out New York session trading around it.


Continuing trading at the start of the Asian session this morning, prices have continued to make gains beyond that level and loosen around the face of the overnight daily hurdle near 1.32300.


Bulls higher are expected to head towards the 1.33000 resistance zone that was tested last week before seeing prices dipping back into the sky.



In case the price makes its initial decline, the 1.32000-1.31500 zone will be tested before a slide lower towards the RBS (resistance become support) zone 1.30700.


A further decline will also head towards the 1.30000 pedestal if the eternal Pound moves weakly against the US dollar.