The Swedish Krona continues to struggle to recover against the British Pound. The broad-based Pound strength is of no match for the Swedish Krona. The GBP/SEK has made no progress during the first trading day of the new week. The pair continues to trade in a very narrow trading range with no clear direction.
Investors are indecisive and they are bracing for another full week of news related to the Brexit saga. Despite the UK lawmakers failing to support PM Boris Johnson’s divorce bill, the British Pound is stone-still. However, this can rapidly change if the Brexit negotiation turns for the worst. But in reality, no one really knows what the new Brexit development will bring.
The House of Common speaker John Bercow has declined to allow a new Brexit vote on PM Johnson’s divorce bill and it’s not clear whether or not this refusal is permanent. With only 9 days left until the official departure date the tensions are escalating but by the way investors are positioned it looks like they are confident of an orderly Brexit departure. The no-deal scenario is still a possible outcome, but the markets are only given a small chance for that to happen.
The scope for more volatility is still possible as we get closer and closer to the 31 October deadline. For now the GBP/SEK exchange rate is expected to be bound to the Brexit theme. However, on Thursday the Sweden Central bank is expected to announce its interest rate decision, which has the potential to shift the dynamics of the GBP/SEK exchange rate.
GBP/SEK Technical Pattern
The GBP/SEK technical pattern remains unchanged. However, since the current trading range has been narrowing there is a high probability to experience false breakouts on both ends of the price range. On the downside, traders should keep an eye on the 12.3280 level while on the upside, traders should pay attention to the 12.6150 level. The big picture trend remains bullish, and as long as we trade above the key 200-day moving average the trend should remain intact.
|What do these figures mean?|
|When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.
For example, it could be written:
1 SEK = 0.080 GBP
Here, 1 SEK is equivalent to approximately 0.080 GBP. This specifically measures the Swedish Krona worth against the British Pound. If the Pound amount increases in this pairing, it’s positive for the Krona.
Or, if you were looking at it the other way around:
1 GBP = 12.50 SEK
In this example, 1 GBP is equivalent to approximately 12.50 SEK. This measures the Pound’s worth versus the Swedish Krona. If the Krona number gets larger, it’s good news for the Pound.