GBP: Sterling Building a Base on Brexit Hopes

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Fundamental Forecast for GBP: Bullish

Sterling (GBP) Talking Points:

  • Sterling continues its slow march higher with gains across a range of currencies, including a strong US dollar.
  • EU President Donald Tusk says a Canada+++ deal remains on the table.

The DailyFX Q4GBP Forecast is available to download.

Sterling remains better bid and bullish in the short- to medium-term after the Conservative Party conference passes without any challenge to PM Theresa May, while talk out of Brussels turns firmly to getting a trade deal in place, despite ongoing differences over the Irish border. GBPUSD is getting back to its best level of the week, and will likely extend this move, as the uptrend off the August 15 low at 1.2662 continues. Against the euro – the best Brexit barometer – the pound hit a 2 month+ high and is now looking to break below the 0.8800 level, a price last seen at the start of July.

The driver for the move is a slight shift in Brexit negotiations from arguing

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2018/10/05/GBP-Sterling-Building-a-Base-on-Brexit-Hopes.html