The British pound has been performing very well against other majors during today’s session after Bank of England deputy governor Dave Ramsden said the central bank was "not about to use negative rates imminently”. Today's announcement was similar to last week's comments of governor Andrew Bailey. Also some markets participants are expecting that additional stimulus measures to help the economy might be announced in the near future after UK Chancellor Rishi Sunak unveiled on Thursday a government's plan aimed to protect jobs over the next six months.
Meanwhile, the final round of talks on the post-Brexit UK-EU trade deal will start on Tuesday. Negotiations have stumbled over fisheries, fair competition and settling disputes, and Brexit descended into fresh chaos this month when London proposed draft laws that would undermine the earlier agreement. Today Prime Minister Johnson’s spokesman said that a Brexit deal is still possible, despite the fact that it has some gaps. He also added that if an agreement is to be reached, it must be done by mid-October at the latest. Investors will be closely following the information coming from tomorrow's and Wednesday's talks as they are to be devoted to major contentious issues. The end of the negotiations is scheduled for Friday, so we will certainly have an interesting week on GBP-related currency pairs.
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GBPJPY - during today's session a clear appreciation of the British pound can be seen. When looking on the H4 interval from the technical point of view, one can see that the local downward sequence collapsed, thus it is possible for the currency pair to move towards the resistance at 136.70. Should buyers manage to break above it, then another upward impulse towards 138.40 could be launched. On the other hand, a return below the short term trendline (purple dotted line) may trigger a bigger downward move towards recent lows at 133.15. Source: xStation5
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GBPJPY - during today's session a clear appreciation of the British pound can be seen. When looking on the H4 interval from the technical point of view, one can see that the local downward sequence collapsed, thus it is possible for the currency pair to move towards the resistance at 136.70. Should buyers manage to break above it, then another upward impulse towards 138.40 could be launched. On the other hand, a return below the short term trendline (purple dotted line) may trigger a bigger downward move towards recent lows at 133.15. Source: xStation5
