The basic elements
The Pound finished the best last quarter in a decade with a value rising 6.6% against the US Dollar. The fourth quarter begins with Borish Johnson reaching an Agreement with the EU before the end of the quarter by winning the majority of the vote in the December 12 election. Thus, the Conservative party of the incumbent Prime Minister has a record. best since Margaret Thatcher.
Accordingly, Brexit will occur in late January 2020. However, when it comes to Q1 2020, with the solutions already found, another challenge is still waiting when the UK enters the transition period. Next, it will expire at the end of 2020.
The UK stock index FTSE has had its best momentum in the past 3 years as the risks that weighed on the index in 2019 are gradually dissipating, boosting investors' risk-appetite.
Thus, it can be seen that the basic factors are supporting the pound to return to the recent rally as well as the motivation for the GBPUSD to rise higher.
Technical analysis
On the daily chart, after touching the trendline line from 1.2768 to 1.2827. GBPUSD has made a breakthrough towards the peak of 1.3514. In addition, GBPUSD has support from the main trendline connecting from 1.1958 to 1.2198. The current trend of this pair is still upward. The nearest target is at 1.352 and higher at 1.3693.
GBPUSD only reversed and went down when the secondary trenldine (green) and the main up trendline (red) were completely broken.
REFERENCE STRATEGIES
Buy 1.3016
Stop loss 1.2897
Profit taking 1.35
Recommendation: This is just a Trading Idea. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.
Author: Nguyen Chi Thanh
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