Is the pound ready to rise?

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GBP/USD has closed the week on higher ground on high hopes. These hopes relate to the Brexit negotiations that should hopefully reach some results by the EU Summit in mid-November. Here are two opinions, by BTMU and Credit Agricole:

Here is their view, courtesy of eFXnews:

GBP/USD: Options Flows Points To A Scope For GBP Buying Ahead Of Dec Summit – BTMU

BTMU FX Strategy Research discusses GBP outlook ahead of the December 14-15 EU Summit.

“We see increased upside risks for the pound with clear signs of progress being made toward a financial settlement that prompts a formal shift to transition and trade talks beginning in January

Option flows show greater GBP put demand through most of this week while leveraged speculative futures positioning is certainly not at am extreme which suggest to us scope for speculative GBP buying if we continue to see progress toward a deal being reached and confirmation on a shift in talks to transition in December.

Market participants are understandably wary at this point but risks are increasing of a sudden lurch higher on these signs of progress,” BTMU argues.

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GBP/USD: Many Negatives In The Price; What’s Next? – Credit Agricole

Credit Agricole CIB FX Strategy Research discusses GBP outlook ahead of the coming week.

“Ahead next week it will be quiet in terms of market moving data releases. At the same time there is low surprise potential in the autumn statement to parliament. We expect sentiment to be predominantly driven by Brexit.

…We believe that many negatives are in the price of GBP by now. This is especially true as officials have been stressing the risk of no agreement being reached already.

From a broader angle we expect the GBP to continue trading within the last few months’ trading range. This is especially true as balanced speculative GBP positioning keeps the risk of further position squaring related downside low,” CACIB argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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