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The British pound continued to drift higher against the Norwegian krone in today’s trade. Extending yesterday’s gains to reach an intraday high just of 11.83.
The British pound’s outlook still hinges on the December general election. Newsflow around Brexit continues to dominate the direction sterling is taking.
Boris Johnson recently announced that the Conservative Party is canceling plans to lower taxes for corporations in April next year. They were due to fall from 19% to 17%. According to Johnson, this move should help the government save money and prioritize expenses, including for the NHS.
Meanwhile, new polls from Monday still give the Tories the highest winning chance of 42% at the upcoming election, followed by the Labour Party (28%), the Liberal Democrats (13%) and the Brexit Party (5%). The gambling exchange firm Betfair gives Boris Johnson a 69% chance of winning a majority at the December election.
The Norwegian Consumer Confidence came in at 13.4 points. Slightly lower than the previous month’s reading of 15. Oil prices are mostly unchanged, and there are no important market reports for the British pound scheduled for today.
From a technical standpoint, the GBP/NOK pair is coming close to yesterday’s high of 11.8350. This may host some sell orders and push the price lower. That level also aligns with a rising trendline resistance which has already been respected last week.
The 11.8350-8550 range is an important resistance zone for the pair. A break would send the price to the highest level in three weeks.
To the downside, the November 15 low of 11.69 continues to act as an intermediary support level, followed by the November 7 low of 11.62. As of 7:00 a.m. London time, the British pound traded at 11.82 against the Norwegian krone.
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