GBPUSD Trades in a Range While Awaiting EU-UK Talks

  • 29
    May, 2020

    For the past couple of weeks, the EU and the UK has been stalling the progress of their talks. Up until today, there is still no news as to whether the or not there will be any news from either side.

    Three areas that still haven’t been consolidated are the fisheries aspect, Court of Justice, and the trade agreement.

     

    The Future of the EU-UK Trade Talks

    Next week, UK Prime Minister Boris Johnson will also be joining the trade talks to try to break the ice between the two parties. With the current situation, it is expected that progress will still be slow because of the hard stance of both sides. Because of it, the GBP mist have a hard time trying to make an upward movement.

     

    GBPUSD Technical Outlook

    While the GBPUSD is still in a long term downtrend, the short to medium term movement of the currency pair seems to be constipated between the 1.22757 level and the 1.23300 level.

    In the short term though, the chart shows an uptrend or upward movement that is still stalling due to the economic factors. While some opportunities can already be made, it is prudent to look for a breakout from the 1.23396 level to look for opportunities.

    This will also be possibly fueled by progress in the EU-UK trade talks. But for now, we can expect slow and ranging movements from the medium to long term.

     

     

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