Market Analysis

Forexmart's Market Analysis section provides up-to-date information about the financial market. The overviews are intended to give you an insight into current trends, financial forecasts, global economic reports, and political news that influence the market.

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July 9, 2020 10:29 am

GBP/USD. July 09, 2020 – The sterling rushed to the level of 1.27

The British currency continues to grow steadily on Thursday, approaching 1.27. The growth is primarily due to the weakening US dollar amid growing demand for risky assets. At the same time, the sterling itself received support after the British government announced its latest economic recovery plan after the pandemic in the amount of 30 billion pounds ($38 billion).


The plan includes a reduction in taxes on the purchase of housing, discounts in restaurants for all citizens, as well as a cash bonus for employers who do not fire their employees.


At the same time, the growth potential of the sterling is limited, since the main driver of the growth of the British currency today are the trade negotiations between the European Union and the UK, and they still look rather uncertain.


Thus, the growth of the GBP/USD pair may be limited by the level of 1.27. The RSI indicator is growing slightly from the neutral zone, which confirms this scenario.


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