GBP value, information and evaluation:
- GBP/USD continues to rise, largely on the persistent weak point of the US Dollar, with few indicators but of a pullback.
- The power of currencies like GBP and EUR towards the US Greenback comes at a time when merchants are torn between persevering with stimulus measures and ongoing US-China tensions.
GBP/USD outlook nonetheless optimistic
The continued weak point of the US Greenback, which has fallen steeply for the reason that begin of July, is constant to spice up currencies just like the Euro and the British Pound. With the upward traits in each EUR/USD and GBP/USD safe, the 2 pairs look prone to rise additional, though near-term consolidation can’t be dominated out first.
Because the chart under exhibits, the relative power index (RSI) for GBP/USD just isn’t but in overbought territory and the pair appears to be like to be steady above the 1.27 degree.
GBP/USD Value Chart, One-Hour Timeframe (July 17-23, 2020)
Chart by IG (You possibly can click on on it for a bigger picture)
Recommended by Martin Essex, MSTA
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The weak point of the US Greenback comes at a time when world markets are torn between persevering with measures by central banks and governments to spice up their economies after the harm brought on by the coronavirus pandemic, and ongoing tensions between the US and China.
On that entrance, the US has ordered China to shut its consulate in Houston, Texas, and China has responded by calling the transfer an “unprecedented escalation” of their dispute and stated it’s contemplating closing the US consulate in Wuhan in retaliation.
Nevertheless, European inventory indexes – together with London’s FTSE 100 – are modestly firmer in early Thursday buying and selling regardless of feedback by US President Donald Trump that extra consulate closures are “all the time potential”.
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— Written by Martin Essex, Analyst and Editor
Be happy to contact me by way of Twitter @MartinSEssex