Comment: For everybody that is forex trading, trying to forcast exactly where price is going next with confidence is the ultimate goal. The truth is all of the signals in the world cannot provide you any kind of guarantee that price will go in the direction they indicate. The simple truth is, that whenever trading forex, we’re working with possibilities. The best way to locate the utmost success is usually to gain as much technical and fundamental data together to produce your final decision. Obviously knowing what the experts believes as here in GBPUSD Well Placed to Reach 1.40 as Brexit and Russia Dominate may also lend substance for the arguments for a trade therefore we are constantly hunting with the thoughts of professional traders from brokers right through to live trading room.
GBPUSD talking points:
– GBPUSD is well-placed to reach the 1.40 level despite easing in early European business Tuesday.
– Economic progress and Brexit optimism will likely prove more important than the UK’s argument with Russia.
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GBPUSD on course to reach 1.40
The 1.40 level for GBPUSD is now firmly in traders’ focus despite a slightly weaker tone for the pair in early European business Tuesday. As explained yesterday, the main domestic event is today’s Spring Statement by UK Chancellor of the Exchequer Philip Hamond at 1230 GMT.
The independent Office for Budget Responsibility is expected to revise down its borrowing forecasts for the UK and a less-gloomy tone would give the Pound a boost after early weakness today.
GBPUSD Price Chart, Five-Minute Timeframe (March 12 – March 13, 2018)
Chart by IG
Moreover, hopes are rising that the UK and the EU can reach agreement on a so-called Brexit transition deal ahead of a European Council summit that begins on March 22. Yesterday, the UK’s junior Brexit minister Robin Walker said that the two sides are “very close to a deal this time” on an implementation [transition] period in which access to each other’s markets would continue on their current terms.
This should outweigh any concerns about an escalating dispute between the UK and Russia after a Russian former spy and his daughter were poisoned in the UK with a military-grade nerve agent. UK Prime Minister Theresa May has promised to take “extensive measures” against Russia if there is “no credible response” from the Russians and has been backed by US Secretary of State Rex Tillerson.
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— Written by Martin Essex, Analyst and Editor
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