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GBP / USD: Market Expectations and Recommendations-Analysis and Forecast-December 28, 2020

Last Thursday, EU and UK Brexit negotiators were able to resolve the final issue of a trade agreement that would allow the UK to leave the EU without tariffs on goods produced in the UK or the EU. It was. The Fisheries Act is reviewed annually and the UK will provide a transition period of five and a half years to develop new rules on this issue.

The pound is certainly backed by the positive news of Brexit. The announcement of the final estimate of UK GDP in the third quarter of last week also had a positive impact on the pound sterling. UK GDP growth in the third quarter of 2020 reached 16.0%, down -19.8%, compared to the + 15.5% forecast for the previous quarter. On an annual basis, the indicator was -8.6%, compared to the -9.6% and -21.5% forecasts for the second quarter.

Meanwhile, the pound has fallen and the GBP / USD pair has fallen at the start of today’s European session, trading near the 1.3520 mark at the time of publication of the article and falling towards the nearest support levels 1.3480, 1.3463 (Reference “Technical Analysis and Trading Recommendations”).


TThe trade agreement between the UK and the EU will begin to be implemented with a preliminary application, but parliamentary approval will still be required after January 1st, and new surprises are not excluded here.

There are no plans to publish important macro statistics on the economic calendar today and tomorrow. Economic news will be short and poor in the last week of the year, but news about Brexit and US stimulus could raise market volatility again. Positive news on these issues can also have a positive impact on the market and therefore put more pressure on the dollar.

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GBP / USD: Market Expectations and Recommendations-Analysis and Forecast-December 28, 2020

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