GBPUSD Bullish Price Action as Brexit Deal Imminent

Summary:

GBPUSD trades with a bid tone as Brexit deal is imminenent. The bigger picture shows some interesting times ahead for the GBPUSD pair.

Brexit seems imminent, and the GBPUSD is the first one to reflect it – it rose to 2020 highs and trades with a bid tone in a low-liquidity environment. While the details of the deal are not yet public, it is the perfect time to look back at what Brexit did to the GBPUSD chart in the years that passed since the 2016 referendum.

By the time the result of the referendum was known, the GBPUSD pair had lost over ten big figures. In the weeks that followed, the decline from 1.50 found support around 1.16 area. The bounce that followed met resistance in the previous area that acted as support at 1.40 – an area that may act the same should the pound extend its relief rally.

GBPUSD Technical Analysis

Moving forward, both bulls and bears have something to consider on the GBPUSD pair. Bulls may want to focus on the possible double bottom formed around the lows. If that is the case, the projected measured move points to a much higher GBPUSD in the period ahead – even higher than pre-Brexit values. Bears, on the other hand, may want to step in on any move closer to the 1.40 level. But these are strategies to pursue next year, as the timeframe is too big to trade it during the end of the year holidays.