The British pound jumped significantly higher in yesterdays trading session and is trying to continue that trend today on the back of a deal reached between the Conservitive party and the DUP party to form a new government in the UK.
The currency is now around a critical resistance level against the US dollar at $1.2815 (formerly a support level) and it has managed to break through this level in the Asian session and we believe it may struggle to remain above there and a pullback is immenenet .
Overall we expect the pound to trade within a tight trading range over the next week or so and depending on the outcome of the political agreement, it could try to make a break for the $1.30 mark as it did a few weeks ago.
There is a good support level at $127.40 so at the moment there isn’t a huge amount of risk for long trading positions
To sum up, expect the British currency to trade sideways for quite sometime before continuing its uptrend once all the political dust has settled.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
IMPORTANT: Please be informed, that our services are available for Professional Clients only. Our website is currently under review for the implementation of the correspondent amendments.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|