News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Sterling (GBP) Remains On Edge as EU/UK Trade Talks Continue

Sterling (GBP) Remains On Edge as EU/UK Trade Talks Continue

Nick Cawley, Strategist

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)

GBPUSD Price chart

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.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES