GBP price, Brexit news and analysis:
- GBP/USD will likely continue to trade in a narrow range as the UK continues to argue that there is no point in resuming the post-Brexit trade talks with the EU.
- The key levels to watch are the October 12 high at 1.3082 and the 1.2861 lows touched on October 14 and 16. A break of the range is needed if a trend is to emerge.
GBP/USD at mercy of post-Brexit trade talks
GBP/USD continues to trade in a fairly narrow range and that sideways trading will likely persist as long as the post-Brexit trade talks between the UK and the EU remain deadlocked. Early Tuesday, the junior UK business minister Nadhim Zahawi reiterated that the UK sees no point in resuming negotiations despite chief EU Brexit negotiator Michel Barnier saying Monday that the EU is available to intensify talks in London this week.
Now, there is resistance for GBP/USD at the October 12 high at 1.3082 and support at the 1.2861 lows touched on October 14 and 16, with a break of either support or resistance needed for a new trend in the pair to resume.
GBP/USD Price Chart, Daily Timeframe (July 20 – October 20, 2020)
Source: Refinitiv (You can click on it for a larger image)
UK inflation set to rise
Trade talks aside, UK inflation data are due Wednesday and are expected to show sharp rises last month. However, even if confirmed, that would not reignite talks of tighter UK monetary policy and would therefore do little to boost the Pound.
Source: DailyFX
You can find out here how inflation data affect currency prices.
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--- Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex
