The GBP/USD currency pair has been on a bullish run since the beginning of the year, with the pound sterling gaining ground against the US dollar. However, recent news and forecast suggest that the bulls may face resistance in the coming weeks as the pound sterling price stalls.
One of the factors contributing to the stall in the pound sterling price is the uncertainty surrounding Brexit. The UK and the EU are still negotiating a trade deal, and there is no clear indication of how the talks will end. This uncertainty is causing investors to be cautious, and they are holding back from investing in the pound sterling.
Another factor that is contributing to the stall in the pound sterling price is the economic impact of the COVID-19 pandemic. The UK economy has been hit hard by the pandemic, and it is expected to take some time before it fully recovers. This has led to a decrease in demand for the pound sterling, as investors are looking for safer investments.
In addition to these factors, there are also technical indicators that suggest a stall in the pound sterling price. The GBP/USD currency pair has reached a resistance level at 1.35, which has been a significant level in the past. If the bulls cannot break through this level, it could lead to a reversal in the trend and a decrease in the pound sterling price.
Despite these challenges, there are still some positive indicators for the pound sterling. The Bank of England has indicated that it may raise interest rates in the future, which could increase demand for the pound sterling. In addition, if a trade deal is reached between the UK and the EU, it could lead to an increase in investor confidence and a rise in the pound sterling price.
Overall, while the GBP/USD bulls may face resistance in the coming weeks, there are still opportunities for investors to profit from the currency pair. It is important to keep an eye on both technical and fundamental indicators to make informed investment decisions.
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