The GBP/USD currency pair has been on a bullish trend since the beginning of the year, with the pound sterling gaining strength against the US dollar. However, recent news and forecasts suggest that the bull run may be coming to a halt as resistance levels are being tested.
One of the main factors contributing to the stall in the pound sterling’s rise is the uncertainty surrounding Brexit negotiations. The UK and EU have yet to reach a deal on their future relationship, and the deadline for an agreement is fast approaching. This uncertainty has led to a lack of confidence in the pound sterling, as investors are unsure of what the future holds for the UK economy.
Another factor that is contributing to the stall in the pound sterling’s rise is the resurgence of COVID-19 cases in the UK. The country has recently implemented new lockdown measures in an attempt to curb the spread of the virus, which has led to concerns about the impact on the economy. This uncertainty has also led to a lack of confidence in the pound sterling, as investors are unsure of how the UK economy will fare in the coming months.
In addition to these factors, there are also technical indicators that suggest that the GBP/USD currency pair may be facing resistance. The pair has been trading in a range between 1.30 and 1.35 for several months, and it has recently tested the upper end of this range. If it fails to break through this resistance level, it could signal a reversal in the bullish trend.
Looking ahead, there are several key events that could impact the GBP/USD currency pair. The UK government is set to release its budget on March 3rd, which could provide some clarity on the country’s economic outlook. In addition, there are several central bank meetings scheduled in March, including the Bank of England and Federal Reserve, which could impact the value of both currencies.
Overall, while the GBP/USD currency pair has been on a bullish trend for several months, recent news and forecasts suggest that the trend may be coming to a halt. Uncertainty surrounding Brexit negotiations and the resurgence of COVID-19 cases in the UK, as well as technical indicators, suggest that the pair may be facing resistance. Investors should keep a close eye on key events in the coming weeks to gauge the future direction of the GBP/USD currency pair.
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