The British Pound is rallying against the US Dollar on Thursday on the back of strong volatility and a boost of confidence in the UK economy after the Bank of England (BoE) expanded its bond-buying scheme. The GBPUSD is Trading up 1.18 percent at the time of writing.
The BoE announced it will be increasing its bond purchases by 150 billion Pounds totaling 895 billion, exceeding estimates of an increase of 100 billion. The central bank also declared that it will not be looking at negative rates, for now, prompting GBPUSD bulls to ramp up their buying activity.
Meanwhile, in the US, a winner of the elections has not yet been confirmed with several states still in the process of counting votes, maintaining volatility in the USD. At the time of writing, Joe Biden is in the lead and set to become the 46th President of the US. Should this be the case, analysts are expecting a larger relief package and in turn, increased pressure on the greenback.
The trend in the GBPUSD will likely continue as long as Biden is poised to claim the victory. The only foreseeable headwind in the near term for the British Pound will developments in the Brexit trade negotiations. The back and forth in talks will likely continue with any positive headlines boosting the cable.
From a technical perspective, the main trend in the GBPUSD has crossed into the positive territory with the MACD indicating the formation of a golden cross, a bullish sign. The pair failed to set a new high, however, but should it manage to hold above the 0.5 Fibonacci retracement level around the 1.30807 marks, a test of the 1.31755 immediate resistANCe level can be envisaged in the coming sessions.
(Chart Source: Tradingview 05.11.2020)
On the downside, a break below 1.30807 will open the door for a reversal towards the 1.29830 support zone. For now, the trend in the GBPUSD remains shaky with a strong pullback just as likely as jump higher until we have further clarity on the US elections later this week.
Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.
本文标题：GOLDWELL：Daily Market Recap - GBPUSD
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