Sterling (GBP):
- UK PM Boris Johnson wants EU/UK trade talks to be completed by September.
- Sterling stuck in a range.
Sterling (GBP) Needs A Fresh Driver
With an extension of the Brexit transition period now officially off the table, the EU and the UK will have to re-double their efforts to find common ground on a new trade deal otherwise the two sides will be trading on WTO terms from January 1 next year. Both sides are still hopeful of a deal, yet neither have budged from their starting positions, leaving a deal still very much in doubt. Recent economic data released from the UK and the Eurozone has picked up, but from a very lowly base, as the COVID-19 viruscontinues to press down on economic activity. As such a deal needs to be made and quickly.
Sterling continues to sit on the middle of the Q2 trading range of 1.2070 – 1.2815 and will need a driver to break either way. Any positive talk of a deal, even if it is bare-boned, should see GBP/USD move towards last quarter’s high, while further disappointment will weigh heavily on the pair.
GBP/USD Weekly Price Chart (May 2017 – July 2020)
| Change in | Longs | Shorts | OI |
| Daily | -7% | -2% | -5% |
| Weekly | 9% | -17% | -3% |
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on Sterling (GBP) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
