The British pound extended its gains against the Norwegian krone for the fourth consecutive day, trading near yesterday’s high of 11.8320 during the Asian session. With a light economic calendar for both currencies today, headline risks remain an important driver for the pound ahead of the general election on December 12.
Yesterday’s television debate, hosting Conservative Prime Minister Boris Johnson and Labour Leader Jeremy Corbyn, was one of those important events that could have a long-lasting impact on sterling.
Jeremy Corbyn tied with Boris Johnson in a snap poll after the television clash on promises to call another referendum on UK’s membership in the European Union and to end the privatization of the National Health Service. Prime Minister Johnson was mostly focused on Brexit during the debate, saying he would deliver a fast divorce with the EU.
The poll conducted by YouGov showed that yesterday’s debate was one of the best moments for Labour Leader Corbyn, who has struggled to keep up with the Conservatives in previous polls. Around 49% of the 1,600 people who participated in the poll said that Corbyn won the debate, against 51% favouring Johnson. The next head-to-head between the two candidates is planned for December 6, just one week before the election.
From a technical standpoint, the GBP/NOK pair is trading near weekly highs with important resistance levels to the upside. Highs reached on November 6 and 13, the 61.8% Fib level and a rising trendline could provide some selling pressure in the 11.82-85 range. The break of those levels could push the price higher to retest the upper triangle line around 11.90.
To the downside, the November 15 low of 11.70 acts as a possible support level, followed by the November 7 low of 11.62. As of 7:00 a.m. London time, the krone traded at 11.8280 against sterling.