- GBP/USD trades back at 1.30 level after Wednesday’s selloff dragged the pair briefly below trendline support, although it quickly reversed.
- Brexit headlines and market sentiment after Wednesday’s “risk off” move that hit equity markets hard.
GBP/USD STABLE AFTER DECLINE & RECOVERY
GBP/USD trades in a more stable manner on Thursday after briefly spiking below a trend line support from late September. The fact that the price quickly rebounded indicates that the trendline remains a key support. GBP/USD trades back at 1.30.
Brexit headlines pointing to progress, or a lack of it, in EU – UK trade talks will influence GBP/USD. Market sentiment is also an important driver after Wednesday’s steep falls in riskier assets such as stocks. Covid-19 is also a key driver as European countries tighten lockdown restrictions.
UK Government has said it will do everything it can to avoid a second national UK lockdown, instead trying to control the virus with tough local restrictions.