Brexit – Deal or No Deal? There Is Still Hope For The Pound!

October 19, 2020

Brexit- The Drama Is However To End

by Bog& Giulvezan

Last Friday, UK Prime Minister Boris Johnson obviously pulled the plug on EU – UK trade divvy up negotiations, expression that the advancement made yet is insufficient. Notwithstandin, he also mentioned that talks Crataegus laevigata continue if in that location's "some fundamental change of approach".

But thither May still personify hope for a deal: nowadays, Lord Frost, UK's chief negotiant leave speak on the sound with his EU counterpart, disagreeable to reach a via media. It looks like the Pound perceives this as bullish, jumping close to 100 pips and examination the resistor at 1.3000.

According to reports, a Covid-19 vaccine may be available in the United Kingdom of Great Britain and Northern Irelan, with up to 40 million doses being stored in Belgium, awaiting established sanctioning. According to the Daily Telegraphy, Astra Zeneca and Oxford University are as wel in the final stages of developing a vaccinum. Considering that Covid-19 had a negative bear on on the economy, a vaccine that would put an end to the pandemic would equal alright received by the markets but it's probably a bit previous to get our hopes up.

Key Events for the Week Ahead

Fed Chair Colin luther Powell is scheduled to talk via satellite Monday, October 19 at 1:00 pm Greenwich Time at the International Monetary Fund's annual meeting. He will participate in a panel word on the issue of digital currencies and cross-border payments. It's unclear whether this bequeath have a notable impact connected the US Dollar operating theatre other edict currencies, only information technology's always a good idea to be aware of this type of event because volatility may increase.

Thursday, Oct 22, Bank of England Governor Bailey will verbalize at the Water level Summit. The event will be hosted online, due to the flow pandemic but excitability is often experienced when heads of midway banks make open appearances.

The week finishes with a series of PMI (Buying Managers' Index) releases scheduled for Friday: the EU and GB Services and Manufacturing PMIs, as good as the Manufacturing PMI for the US. These are all leading indicators of economic health and usually give a medium impact on the various currency, with higher than anticipated numbers strengthening it.

The Technical Scene – GBP/USD

Recent Pound strength took GBP/USD fleetly above the 100-menstruum EMA (4-hour chart) and into the key resistance at 1.3000. The style price behaves Hera volition probably fix the following short-to-medium terminus counselling.

The support at 1.2870 rejected price several times in the recent historical period, thus we can consider it a good aim if the pair fails to excel 1.3000. But then, a just infract of 1.3000 would make 1.3080 the foremost target, considering that the level was the peak of the "mini" uptrend started in September, at 1.2690 support.