Search ForexCrunch

GBP/USD has recovered from the abyss as markets calm about the virus strain. Hopes for a Brexit breakthrough also keep the pound afloat. According to FXStreet’s Analyst Yohay Elam, Boris’ moves are set to unleash a sterling surge. 

See – GBP/USD to be unable to break above 1.35 even with a Brexit deal – MUFG

Key quotes

“UK Prime Minister Boris Johnson may now allow for a rally by making a concession to Brussels. The PM reportedly tabled an offer that reduces the catch that the bloc’s boats fish to 35% from 60% originally demanded. Brussels still wants 25%, but even without getting into the details of the minuscule industry, nearly halving a demand. Overall, there is significant room for optimism on the Brexit front.” 

“The panic about a situation ‘out of control’ has led to bans on flights to and from the UK – and a partial French closure of the border, causing lengthy traffic jams. On this front, Johnson’s approach has been calm, promising to work with his French counterparts to resolve the issue. All in all, the panic early on Monday is turning into calm with the potential for rises.” 

“Some resistance awaits at 1.3540, a high point last week, followed by 1.35, Monday’s swing high. It is followed by 1.3535, another temporary peak. Support awaits at the daily low of 1.3380, followed by 1.3325, which is where the 200 SMA hits the price.”