Good morning! Here is your Daily FX Research. Enjoy!
GBPUSD fell yesterday over 2% during the morning session. I highlighted the 1.3200 area as an area of support to look for bullish evidence. The 1.3200 offered a bullish opportunity back up to the the 1.3100 area of resistance.
Brexit
My base case is still for a UK-EU trade deal to come to fruition before the deadline on December 31st. Even though price fell due to the news over the weekend, price bounced significantly off of the 1.3200 area. Market sentiment is still rather bullish for GBP. The very fact that the sellers can't keep the pound down is a bullish indication of what the market thinks.
The next resistance on the upside to look for potential bearish evidence is the 1.3500 handle where the gap fill lies. There could be a modest short term reaction off of this level. But if 1.3500 breaks on the upside, I would looking for this resistance area to become new support up towards 1.3600.
USD
The USD still continues to drift lower with short term rallies being sold. Fiscal stimulus approved by congress should help to keep the dollar on the backfoot into the end of the year and throughout early 2021.
Please subscribe to receive my Daily Research directly to your email to ensure you never miss a report. Thank you for your support! It means the world. Enjoy!
Comments