Pound Sterling Price News and Forecast: GBP/USD corrective pullback eyes 1

Pound Sterling Price News and Forecast: GBP/USD corrective pullback eyes 1.3400 despite Brexit deadlock, virus woes

new twenty pound notes 3079030 Large

GBP/USD consolidates around 1.3350 with Brexit talks still stuck on fish

GBP/USD has flatlined in the 1.3350 region in recent trade, a little above session lows around the 1.3300 mark, but still lower on the day by about 110 pips or 0.8%. Having pushed higher above the 90.50 prior to the end of the European trading session, the Dollar Index (DXY) has been going sideways in the 90.60s in recent trade; this earlier USD strength was the main factor that pushed GBP/USD down from 1.3400 earlier in the day, though ongoing Brexit angst (more below) is also not helping and likely explains why GBP is the underperforming G10 currency on the day.

Trading conditions have quietened down notably over the last few hours since the exit of European traders from the market around the time of the EU cash close.

GBP/USD: Corrective pullback eyes 1.3400 despite Brexit deadlock, virus woes in UK

GBP/USD ticks up to 1.3375 while consolidating the previous three days’ downside during Wednesday s Asian session. In doing so, the Cable pays a little heed to The Telegraph headlines suggesting more lockdowns in Britain are on the way. Also challenging the corrective pullback is the Brexit deadlock that’s far from over.

Although policymakers from the European Union (EU) and the UK have been sweating for months, the final touches are in the hands of European Commission President Von der Leyen (VDL) and UK PM Boris Johnson.

Credit: FX Street

Leave A Comment

Your email address will not be published. Required fields are marked *