empty
 
 
24.11.2020 01:55 AM
GBP/USD: Bulls are setting a new target – 1.35

This image is no longer relevant

This week, the traders' attention will be set on the pound, which was tearing up on Monday, obsessed with hopes of a Brexit deal. Buyers of the GBP/USD pair managed to push the rate above 1.33. The EU's Chief negotiator said that fundamental differences remain, but both sides persist in concluding a trade pact.

According to European officials, the trade deal is 95% agreed. Meanwhile, it became known earlier that the parties temporarily suspended the dialogue, because one of the negotiators was diagnosed with coronavirus. Currently, work in this area is carried out in a remote format. The pound's growth was also favored by optimistic retail data and the weakness of the dollar, which faced another wave of sales on Monday. US Treasury Secretary Steven Mnuchin said that negotiations on a new package of stimulus measures will continue in the near future. The epidemiological situation in the United States is deteriorating and may lead to new restrictive measures and the inevitable recession of the country's economy.

So, the "buy on expectations, sell on facts" strategy will be fundamental until the Brexit situation becomes clearer. This means that the GBP/USD pair has a real chance to test the psychological resistance of 1.35.

The dollar weakened to a near 3-month low against a basket of currencies today. In addition to the above factors, this was helped by optimism about the next COVID-19 vaccine. AstraZeneca said that its drug showed an effectiveness of about 90%. The pharmaceutical company will be ready to provide data to authorities around the world who would like to use this vaccine. In any case, the news helps to overshadow concerns about economic growth. However, the continued threat of a slowdown may help slow the dollar's decline. In the US session, the dollar index bounced from the technical support level of 92 points, which in the event of a breakdown may signal further weakness of the US currency. The greenback rebound interrupted the growth of world currencies, including the pound.

This image is no longer relevant

Following the publication of strong statistics on business activity in the United States, the rate rose sharply. This state of affairs may force the Federal Reserve to postpone aggressive stimulus measures. Perhaps the regulator will prefer to wait until the updated composition of the Congress begins in January.

The euro strengthened on Monday, the exchange rate briefly broke through the 1.19 mark. It was impossible to stay on it, followed by a deeper pullback due to the behavior of the dollar. Part of the decline in the euro is due to weak macroeconomic data for the Euro area. Consumer confidence has fallen on a predictable trajectory. The index fell to minus 17.6 points (forecast minus 17.7 points). This is a kind of hint that the economy will still experience a shock from repeated coronavirus measures.

Meanwhile, market strategists continue to believe that the next target for the euro will be its September high around 1.2010, followed by the February 2018 peak of -1.25.

This image is no longer relevant

Natalya Andreeva,
Experto analítico de InstaForex
© 2007-2024
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO
  • Depósito al azar
    ¡Haga un depósito en su cuenta de $3,000 y obtenga $8000 más!
    ¡En Marzo, sorteamos $8000 dentro de la campaña Depósito afortunado!
    Obtenga la oportunidad de ganar depositando $3,000 en una cuenta de operaciones. Tras haber cumplido esta condición, se convertirá en un participante de la campaña.
    UNIRSE AL CONCURSO
  • Opere de forma inteligente, gane un dispositivo
    Recargue su cuenta con al menos $500, regístrese en el concurso y tenga la oportunidad de ganar dispositivos móviles.
    UNIRSE AL CONCURSO
  • 100% de bonificación
    Su oportunidad única de obtener un bono del 100 % en su depósito
    OBTENER BONO
  • 55% de bonificación
    Solicite un bono del 55% en cada depósito
    OBTENER BONO
  • 30% de bonificación
    Reciba un bono del 30% cada vez que recargue su cuenta
    OBTENER BONO

Recommended Stories

¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback