GBP USD set to Skyrocket in 2020? Technical Forex Analysis
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Is GBP USD set to skyrocket in 2020 after the latest UK elections. Watch our technical forex analysis while we also discuss the fundamental drivers of GBP USD trading in the next year. Share your predictions in the comments!
The Pound has been in a strong uptrend since last August when the no-deal option was removed from the table of Brexit negotiations. Since then the predictions for the UK general election held on December 12 were for a Conservative win and the GBP USD chart reflected that by reaching 1.31.
The most important question for our GBP USD analysis now is whether the honeymoon period that came right after the election – and pushed the GBP/USD chart to just over 1.35 – is over.
From our GBP USD chart analysis it appears a large portion of the positive news has already been prices in. Rising around 13% since the September low in the space of three months has made many bulls profitable but is there more steam to move in this direction for the whole of 2020?
There are remaining risk that could scuttle the rally and change the GBP/USD analysis that many are preparing for next year. Today it became clear that Boris Johnson does actually allow the option of a no-deal Brexit (by signing into law that the UK will leave the EU in 2020 with or without a deal).
This could once again cause global investment into UK assets (and the need for GBP to do it) to tumble.
Whatever the case, 2020 promises to be another exciting year for forex traders that plan to trade with the GBP USD pair.
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