On Monday, the UK Brexit Minister gave his displeasure from the EU proposal to overcome the Northern Ireland border issues to a parliamentary committee. According to the Sky News reports, the EU proposal does not go far enough. On a different page, according to CNBC, in the last 4 days UK has seen close to 40,000 new COVID cases per day, and there an expectation by the UK health secretary of an increase of COVID cases to be 100,000 cases per day if the people let their guard down, especially that the country heads into the winter season. The fear of virus mutation will weigh on the GBP/USD prices. In the US, regarding the hawkish Fed-speak, the US Dollar index remains firm, and extends the previous day’s rebound from monthly low. After the two downtrends, the US 10-year treasury yields increase by 1.64%. Finally, looking forward, on Tuesday, a group of EU diplomats are visiting London, which will make the Brexit headline more important for the pair traders.

From a technical side of view, Sterling rose slightly with the beginning of this week but remained within a recent range, as there is an expectation of a hike in the rates by the Bank of England against the economic data and Brexit headline. This pair remains defensive around 1.3765 level. It continues to hold steady and be traded below the 1.3851 level. If this pair breaks above 1.3851 level a bullish movement will occur and will move towards the mid-September high at 1.3914, an increase above this level will direct this pair to 1.3984. On the flip side of the coin, if this pair fails to break above 1.3851 a bearish movement will occur and direct it to 1.3720, a break below this short-term support will accelerate the downtrend and move towards the next support at 1.3569, following the 12th of October low at 1.3411.


The pair gained some traction during the early trading time action on Tuesday, the ongoing US dollar recovery from on month lows have capped the bullish movement of this pair and prompted a fresh selling at higher levels. On Friday, Jerome Powell claimed that the US central bank will begin rolling back to its pandemic-era stimulus by the end of the year, which will lead to an interest rate hike in 2022 and will raise an expectation of hike in commodities in the time being. Market participants now look forward to the US economic agenda – featuring the releases of the Conference Board’s Confidence Index, Richmond Manufacturing Index and New Home Sales. This along with the US bond yields that will influence the USD price dynamic.

This pair is trading at 0.7175 if this pair fails to fall below the 0.7105 level the resume of the bull to reach 0.7320. However, the bullish scenario may no longer be valid if the price breaks below 0.7105, this pair will be directed to the next support at 0.7025. If the price breaks below this level, the pair may continue falling towards 0.6935.

Share on facebook
Share on twitter
Share on pinterest
Share on email
  • All
  • Blog
  • Economic Events
  • Featured Articles
  • Learn to Trade
  • Market Analysis
  • Market Analysis
  • News
  • News
  • OneRoyal News
  • Press Releases
  • Uncategorized
  • أخبار OneRoyal
  • الأحداث الاقتصادية
  • تحليل الأسواق
  • تصريحات صحفيه
  • تعلم كيف تتداول
  • غير مصنف
  • غير مصنف
  • مقالات مميزة

Gold rises ahead of US inflation data, could reach $2400 in this case

Read More →

Newest From Category

Newest from