GBPUSD records its highest in two and a half months

Mohammed Abdelkhalik
November 23, 2020

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GBPUSD Weekly Outlook: 23rd November 2020

GBPUSD expanded its gains to record the second daily rise and its highest level in two and a half months. These broad gains prompted optimistic news related to the potential Coronavirus vaccine, which encouraged Uk forex investors to buy high-risk assets. And also supported gains The British Pound advances trade negotiations between Britain and the European Union to reach a final agreement that regulates future relations between the two parties after Brexit scheduled for December 31.

GBPUSD added gains of about 0.6%, to trade at $ 1.3368, the highest in nearly two and a half months, from today’s opening price of $ 1.3292.

Daily chart of GBPUSD - 23rd November 2020

By the end of last week’s trading, GBPUSD recorded its third consecutive weekly gain, with gains estimated at 0.7%. Supported by the positive trade negotiations being held between British and European Union negotiators. In addition to the continued weakness in the US dollar.

GBPUSD looking forward to the trading agreement

The Sunday Times reported that Britain’s Finance Minister Rishi Sunak said on Saturday that trade negotiations with the European Union.

London and Brussels this week continue to intensify their negotiations to agree on a final deal regulating the pace of trade relations in the future. Even though Britain is less than six weeks away from a final exit from the European Union.

Without an agreement, Britain would be forced to deal with the European Union according to the World Trade Organization. And many economists consider this outcome economically devastating for both parties.

Since the beginning of the transitional phase, the two parties have held trade talks to form future relations between them after the final separation of Britain from the European Union supposed on December 31, and according to recent statements issued by the two sides.

The general indicator indicates that the negotiations are progressing well and making remarkable progress to reach a final agreement. Britain avoids a messy exit.

Optimism in light of the Corona vaccine

The news about the British company AstraZeneca increases the positivity of the British pound. As it announced that it had reached an effective vaccine for the Coronavirus that could be approximately 90% effective.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.