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GBPUSD Rallies to 1.2800 Ahead of Carney Speech

GBPUSD Rallies to 1.2800 Ahead of Carney Speech

The GBDUSD pair caught some aggressive bids in the last hour, with bulls now aiming for a move further beyond the 1.2800 handle.

November 28, GKFX – Having shown resilience near the 1.2725 region – monthly lows support, the pair staged a solid rebound and has now recovered a major part of the previous session’s downfall to near two-week lows. 

BoE’s FSR/Brexit Snalysis/Carney’s speech Expectations

The latest leg of a sudden upsurge over the past hour or so lacked any obvious catalyst and could be solely attributed to some short-covering move amid absent negative Brexit headlines.

Moreover, traders also seemed inclined to lighten their bets ahead of today’s release of Bank of England’s (BoE) financial stability report (FSR) and stress tests result at 1630 GMT. 

The central bank will also publish its analysis on the EU withdrawal agreement and the release will be followed by BoE Governor Mark Carney’s press conference at 1645 GMT. 

The BoE assessment regarding the UK economy’s ability to weather a hard Brexit is expected to infuse a fresh bout of volatility across the GBP pairs and seemed to be the only factor prompting some short-covering.

Hence, it would be prudent to wait for a strong follow-through buying interest before confirming that the pair might have already bottomed out in the near-term and is set to build on the ongoing recovery momentum.

GBPUSD Technical Outlook

Any subsequent up-move beyond the 1.2800 handle is likely to confront immediate resistance near the 1.2825-30 region, above which the pair is likely to aim towards reclaiming the 1.2900 round figure mark.

On the flip side, weakness back below the 1.2765-60 region might continue to find some support near the 1.2725 region, which if broken might turn the pair vulnerable to break through the 1.2700 handle.

Disclaimer

This article was provided by GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.