GBP strengthening, important bullish technical levels ahead followed by USD softening on US mid-term election result
- GBP strengthening, as USD price dipped lower on mid-term election result and democrats regain house of representatives and republican retains the senate resulting a political jam in Washington
- Important GBP bullish technical levels ahead and if broken, a long-term sterling bull-run may begin
- Brexit sentiment still fueling and holding the key supports for GBP, as UK-Irish border issue is at the edge of a mutual solution and EU-UK economic relation improves
GBP rallying after US mid-term election
As the US mid-term election results are released, GBP bull run gains further momentum and it is currently being traded at 1.3165. Eur has also achieved a bullish momentum, as it is reigning closer to the 1.1500 region. USD keeps falling against most of the major currencies and currently is residing at 95.27, more fall is anticipated.
GBP/USD daily price chart
According to Washington post, Democrats regain the house of representatives and republics have retained the senate resulting a crucial political deadlock that could potentially damage the price and image of USD. As a result of market set-up, the GBP is gaining further bullish momentum and it closer to an important bullish point. Right now, three indicators are pointing towards a long-term GBP bull run.
- Enlivened Brexit hope, as UK is closing in to the Irish border solution, however, EU has not yet agreed to the terms and conditions. Internal sources confirmed that it is only a matter of time EU-UK comes in to an agreement
- Economic outlook looks brighter for EU-UK trade zone, as UK has been allowed to continue trades in the Euro zone, as long as Brexit deal remains intact
- USD is softening pretty quickly, as political deadlock looming large over the US parliament.
GBP/USD is closing in towards an important technical level where all of these three points mentioned above could collide and if GBP could break above its potential resistance at 1.3310 region, an upwind move towards 1.3500 region would open up. It could also be forecasted with utter confidence that the GBP bull-run is going to last in the long run, if the market momentum, bias and catalysts remain unaltered.
[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]
Read more on US mid term elections here