GBP is supported by Brexit talks and inflation

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By :  ,  Financial Analyst

GBP is supported by Brexit talks and inflation

The British pound is gaining ground, boosted by news of progress in the Brexit trade talks. Also, U.K. October CPI was released at +0.7% on year, above +0.5% expected. Core CPI also stood expectations at +1.5%, vs +1.3% anticipated.

From a technical point of view, on a daily chart, GBP/USD is challenging the upper boundary of a bullish channel and stands above its 50-day moving average (in blue). Readers may therefore consider the potential for further advance above horizontal support at 1.2865. The nearest resistance would be set at September top at 1.3480 and a second one would be set at previous overlap at 1.3710 in extension.

Source: TradingView, GAIN Capital

Related tags: Forex Forex GBP

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