Sterling stays more resilient as UK reopening keeps the optimism flowing

Technical Analysis

Author: Justin Low | gbpusd

The pound is the best performing major currency today

GBP/USD D1 23-02
Despite the dollar creeping back up amid hints of risk aversion in the market, the pound is staying more resilient as cable holds near the highs close to 1.4090.

If anything else, it highlights the conviction in the pound at the moment and this continues to make it tough to really challenge for a push lower.

The break of 1.4000 looks to be sustained now and buyers will be potentially targeting the 2018 highs above 1.4300 if things continue to fall into place for the pound and the UK economy as we look towards the summer.

Adding to that is also the continuation in the technical breakdown in EUR/GBP:

EUR/GBP D1 23-02
The pair is gradually making its way towards 0.8600 now and from a technical perspective, there is very little in the way of a further drop to 0.8300 from hereon.

All things being equal, the technicals are keeping very much in favour of the quid at the moment and the momentum is a tough one to go against unless something changes.
Invest in yourself. See our forex education hub.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose