GBPUSD Rises With Potential for More Election Drama Ahead

Summary:

GBPUSD was 0.20% higher on Monday with the potential for further twists in the U.S. election picture in the week ahead still there.

GBPUSD was 0.20% higher on Monday with the potential for further twists in the U.S. election picture in the week ahead. The media declared Joe Biden the winner of the race for the Presidency on Friday despite the fact there are legal challenges remaining.

The declaration of the election win was met by congratulatory messages from many world leaders, including Canada’s Trudeau and the U.K.’s Boris Johnson. These leaders are aware that there are legal challenges to be seen and the electoral college voting in December so it is a bit premature and traders should be on guard for a potential swing and volatility.

Brexit talks opened again on Monday and there was a positive tone from the EU’s Chief negotiation and the U.K.’s environment secretary that a deal could progress. The Prime Minister also commented that a deal was there to be done, saying:

“I’ve always been a great enthusiast for a trade deal with our European friends and partners. I think it’s there to be done, the broad outlines are pretty clear. We just need to get on and do it if we can.”

Tomorrow sees the latest employment figures from the U.K. with a reading of -135k expected after last months -153k. The country was due to end its employment furlough program and this may factor into the numbers. The Eurozone releases ZEW economic sentiment numbers tomorrow also.

GBPUSD Technical Outlook

GBPUSD is now trading above the 1.3150 level which capped gains on October 21st. If the market can stay above this level then a push towards the 1st September high at 1.3488 is possible. Bullish traders could go long with a stop above Friday’s low. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.