Pound sterling moves according to plan

By 12/02/2021News
Morning Stock News

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The British Pound continues its rise both against the US Dollar and against all other currencies, the world’s leading economies. We have repeatedly drawn the attention of our subscribers to this medium and long-term idea. What has changed since the last newsletter?


GBP/USD

GBPUSD

We have added trend lines to the chart. A nice rising channel has emerged. It looks like the pound is moving forward like a heavy tank. Slowly, solidly and sweeping away all obstacles in its path.
Since the Brexit referendum in the UK, the British currency has been in constant trouble. And changes of prime ministers have only added to the pessimism of its holders. Then the coronavirus situation, when it became clear that the island, in this case, was not an advantage. All in all, a huge amount of negativity hovered over sterling for years.
And suddenly the negativity ended all at once. The Brexit story is over, no one is going to replace the Prime Minister, there are no further parliamentary elections, and the coronavirus vaccination is proceeding at the fastest pace in Europe.
What was the pound supposed to do in such a situation? That’ s right, start to rise. And in the long run, it is not clear at all what negativity could appear on the market for the trend to change. The first target for the Pound/Dollar pair is the 1.40 level. Then there is no resistance visible on the chart, until the round value of 1.50.
The only thing that may interfere with this development is a sharp rise of the American dollar against all major world currencies. But we have explained this point in detail several times before. For those who have forgotten, let’s open the chart of the Euro/Pound Sterling pair. We see the same strong trend, which has a lower speed. But at the same time the risks in this pair are minimal.

08.00 UK Q4 GDP
16.00 University of Michigan consumer confidence index for February US


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