Pound climbs for fourth day in a row, not only on the weakness of the dollar

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While the stock markets continuing to rally on the “sigh of relief”, the currency is entrenched in tight ranges, refusing to move in the absence of important economic events. The situation with tariffs trump remains in the spotlight, although the fears of investors retreated after the President’s plan brought criticism from his fellow Republicans, not to mention trading partners of America ready to repay in the same coin.
The continuing tension felt in currency markets where the dollar, despite the low trading activity, trading under slight pressure against a basket of major currencies. Pound rises fourth day in a row, not only on the weakness of the American colleagues. Yesterday, the currency received a boost to the development of a bullish move on strong data on business activity in the services sector of Britain and accelerated after the life-affirming statements may. The Prime Minister assured the markets that London and Brussels’s going to negotiate terms of the transition period and leave the differences behind.
However, as it was more than once, these assurances may not get confirmation on the matter, because the EU has yet to outline his vision of the situation this week. Thus, the uncertainty in this question, despite the optimism may, is preserved, and this limits bullish potential of the pound.
GBPUSD updated on the eve of the March highs near 1.3880 level, block the path to the mark of 1.39, which is slightly above the 20-day moving average. Today, in the absence of fresh drivers the pair is confined to a narrow channel, but if during the auction the pressure on the dollar will increase, the pound will take advantage of the situation, although confident of the breakdown of the 1.39 level is unlikely until the market is waiting for signals from the European Union.
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Michael Mashchenko,
Analyst social network for investors
eToro in Russia and the CIS