GBP price, Brexit news and analysis:
- GBP/USD looks likely to continue to trade around the 1.30 level as the talks between the EU and the UK on their future trade relationship continue.
- There is caution too ahead of the upcoming US elections amid concerns that the post-Brexit UK will not be a priority for Joe Biden if he becomes the next US President.
GBP/USD in narrow range around 1.30
GBP/USD continues to trade around the 1.30 level and will likely continue to do so near-term as the EU and the UK continue their talks on their trade relationship once the current Brexit transition period ends on December 31. Next Tuesday’s US elections are also a focus on fears that a Joe Biden presidency would not see its relations with the UK as a priority.
GBP/USD Price Chart, One-Hour Timeframe (October 21-28, 2020)
Chart by IG (You can click on it for a larger image)
On the bright side, Irish finance minister Simon Coveney is reported to be still optimistic that a deal can be reached in the next couple of weeks, in time for approval by the European Parliament by the year-end. However, US Presidential candidate Joe Biden is reported to see a post-Brexit UK as not a priority for his administration if he wins the election next Tuesday.
Meanwhile, the UK House of Lords looks set to continue to try to block the Government’s contentious Internal Market Bill that would breach part of the Brexit withdrawal agreement. Note though that it can only delay the legislation, not block it.
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— Written by Martin Essex, Analyst
Feel free to contact me on Twitter @MartinSEssex