The British pound touched 1.35 and thus climbed to the highest level since December 2019. Many analysts now believe that profit taking could be around the corner, sending the pound lower. Although some investors are still betting on rising prices when a trade deal is signed, many hedge funds have already increased short bets against the pound.
The bottom line is that optimism around Brexit is fully priced in into the pound’s upward trend which is why sterling’s best days may be behind it.
We now expect the cable’s price range to be between 1.3510 and 1.3330.
The euro extended its gains to a high of 1.2174 and hinging on the market’s risk appetite it may touches 1.22 before we see corrective movements. If the euro falls back below 1.2090, we see lower targets at 1.2020 and 1.1960.
The U.S. jobs report is due at 13:30 UTC today.
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