Analysis Market overview

GBPUSD overview 23.11.2020

GBPUSD surges on vaccine and Brexit optimism.

GBPUSD continues to rise strongly under the dual effect of the significant USD outflows and equally strong GBP inflows. The USD outflows are the reflection of the strengthening market optimism as the multiple vaccine developers are preparing for mass vaccination after reaching positive test results in the 3rd stage vaccine trials. The fact that multiple deferent vaccine producers were able to produce highly efficiency vaccines highlights the susceptibility of the COVID-19 virus to vaccination (by using different vaccines) – which adds to the probability this pandemic can be stopped soon. The FX market is seeing it as a GBP bullish signal that the negotiations will be continued in December – increasing the chances the bare-bones Brexit deal will be reached, even if it leaves some trade discussions for later.

Expect buyers on downward corrections.

Next resistance to watch 1.3485 (September high)

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