Hi there traders, this is Steve Miley from forextraders.com and here we’re looking at the pound against the US dollar; the GBPUSD spot FX rate.
Well a negative tone in here, the market sliding from early November, primarily being driven lower in here by US dollar strength rather than Pound weakness. But the Pound is slightly weaker in here, not aggressively weaker, but slightly weaker on the back of uncertainty as we move into the general election campaigning phase.
So a slight negativity for the Pound. But primarily this is being driven by US dollar strength. The US dollar strengthening in here with strong US data in here since the beginning of November, particularly driven by the strength of the US employment report right at the beginning of November.
And then also, hopes of a US trade deal that should be beneficial for the US economy; the US economy is being seen as driving the global economy from this dip, this slight slowdown we’ve gone through in 2019. So the US economy is doing particularly well. The US dollar strengthening through November and that has seen cable pound/dollar push lower.
More recently just thought this critical 1.2787 level. That creates a topping pattern in here, a more negative theme within what we see now as a broader intermediate term range between 1.3013 and 1.2656 down here. So a broader range, but within that broader range, certainly a negative theme and down side pressures.
So we’re seeing downside risks still in here and looking for a more bearish tone to continue into today.
This has been Steve Miley for forextraders.com
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