GBP/USD – Bucks Trend, Rises on Reports of New Stimulus, Brexit Hopes

Sterling rose against the US Dollar, bucking the overall stronger Greenback trend, finishing in New York at 1.2540 (1.2490 yesterday). The British Pound hit an overnight and near 3-week peak at 1.25922 before easing at the close. Britain’s Independent reported that UK Chancellor Sunak will announce a GBP 2 billion funding for hundreds of thousands of jobs to over “hundreds of thousands” of work placements. Hopes that UK and EU trade negotiators could find common grounds on a fishing issue in their Brexit talks also underpinned the British Pound.

DailyFX IDC H1 GBPUSD Chart - 08 July 2020
DailyFX IDC H1 GBPUSD Chart – 08 July 2020

In early Asian trade, Sterling ( GBPUSD) rose modestly to its current 1.2563 from its 1.2542 NY close before settling at its current 1.2552. Immediate resistance lies at 1.2570 followed by 1.2600 and 1.2650. Immediate support can be found at 1.2520 followed by 1.2480 and 1.2430. Expect an initial choppy trading range between 1.2450 and 1.2600 given recent developments. Which will either be confirmed or denied. Prefer to sell rallies should the market retain a risk-off stance.

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