- GBP / USD has recovered from the lows initially touched at 1.3300 to trade near the middle of its recent range at 1.3350.
- The Brexit talks drag on with no signs of any progress yet, fueling range-bound GBP / USD conditions.
The GBP/USD It has recovered sharply from lows of 1.3310 earlier in the session and has returned to trading sideways around 1.3350.
The pound will settle within the 1.3300-1.3400 range as markets await the Brexit deal
GBP / USD was again unable to sustain gains above 1.3300 during the European morning session on Friday. The tone of the news about the state of the Brexit negotiations has turned negative again and has weighed slightly on the currency.
The two parties are still not in agreement and time is running out quickly. Even if the two regions can reach an agreement by the end of next week, it is far from certain that the EU parliament will be able to sign the legislation on the new trade agreement into law before the end of the transition period in just over one month.
But given the strength with which a deal fits in the interests of both parties, markets still seem to be expecting a long time for a deal sooner or later. Hence, buyers rushed ahead of 1.3300 and pushed the pair back to flat on the day around 1.3350.
On the other hand, news that the Covid-19 reproduction rate, or R rate, had once again fallen below 1.0, according to the latest estimates, also appears to be helping the British pound slide back to a lows. The R rate is now estimated to be between 0.9 and 1.0, and the number of new infections per day is reduced by 0.0 to 2.0% per day.
GBP / USD splits the range of 1.3300-1.3400
In-range financial market conditions were expected Thursday and Friday (and will likely continue until next Monday), given the US Thanksgiving holiday GBP / USD has certainly adjusted to this, and the pair it has apparently settled within a rough range of 1.3300-1.3400 on the week.
A break to the upside of this range, perhaps triggered by an extension of USD weakness or signs of progress at key points in the Brexit negotiations, would open the opportunity for a run at the early September highs just above the psychological level of 1.3500. Before that, there are few notable levels of resistance.
A break to the downside of this range, perhaps triggered by a broad recovery in the USD or signs that Brexit negotiations are beginning to unravel, would cause GBP / USD to have to deal with various levels of short-term support, which They include the November 24 low at 1.3293, the November 23 low at 1.3264 and then below the November 19 low at the 1.3200 psychological level.
Hour chart
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
