SocGen: GBP/USD remains bullish, less likely to cross below 1.30

Societe Generale Research discusses the prospect of the GBP / USD and sees an upward look in the light of the latest developments in Brexit.

"The refusal to sign a deal by the British Parliament and a successful proposal to postpone the event will probably change the balance of risks to the pound in a positive way." The pressure on the currency will certainly be lighter if Brexit becomes more orderly and with a clear vision.

The persistent political impasse provided the currency market with considerable time to mitigate and reject more negative fundamentals. As the final agreement remains to be seen, the two main risks remain - Brexit without a deal (negative effect on the pair) and dropping Brexit (very positive). The first is unlikely, while the second remains a small opportunity in an overly open situation, "SocGen noted.

The currency pair traded above 1.3286, which played the role of a ceiling yesterday, also playing a role of a turning point in the past. This move can also bring worries for vendors and will certainly lead to new purchases and a new upward impulse.

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