The pound remains under pressure

The British pound continues trading under pressure against the US dollar on Friday, amid growing pressure of the US currency, as well as due to the continuing uncertainty caused by EU-UK talks on Brexit.

Still remains unresolved issue regarding the monetary compensation of London for Britain’s withdrawal from the EU. The European Union has asked of 60 billion euros for compensation from Brexit, while the UK agrees to pay only 20 billion euros. The question of payments should be decided in the near future, in order to start negotiations on trade. It was also noted that 27 EU countries are already preparing their response, in case the negotiations fail. Read more …

Technical analysis: At the moment, the pair GBP/USD is trading below the psychology level 1,3100, which provided significant support to the pair in the second half of October. At the moment, one should consider the main support levels at the marks 1.3040 and 1.3025.

Computer analysis: On charts of prices H1 and H4, the Stochastic Oscillator movingss are below level 25, which indicates that instrument is in oversold zone. One should expect an upward correction in the price of the instrument.

Key recommendations: The main recommendation is the purchase of the GBP/USD pair from the levels of 1.3040 and 1.3025. Also, if the price returns above the level of 1,3100, purchases be considered with the corresponding signal of Stochastic Oscillator on the charts H1 and H4.

Fig. Current price GBP/USD – 1.3083

Alexander Sivtsov