Currencies – GBP/USD Sold-off Towards 1.2750/78.6 Pct Retracement; Pound Over 65 Pips

posted by on – The currency pair GBP/USD is at the moment on bid and bouncing back from last week’s lethargy of 1.3130 on the first rassuring indications that the United Kingdom can engage in business directly with countries outside of the European Union, like Australia and Canada.

The Australian government has already proposed with the British finance heads regarding free-trade contract after the Brexit referendum.

According to its new prime minister, Theresa May: “I am optimistic that this government will make a success story of our leaving the European Union… One of the ways we will do this is by welcoming opportunities to open a free trade deal with our trade partners across the continents.”

The prime minister described the move as “very encouraging” and said it proved Brexit could work for Britain. “It’s very encouraging that one of our closest trade partners is already looking for ways to establish such a deal.”

In a telephone conversation with May, her Australian counterpart Malcolm Turnbull disclosed that he wanted to open up a trading partnership between the Britain and Australia.

Liam Fox, the new international trade secretary, stressed that he was already “scoping about a dozen free-trade deals”.

Meanwhile, the GBP/USD forex pair sold-off towards the 1.2750/78.6 percent retracement in a move from 1985 to 2007 at the beginning of July, but it reached peaks of 1.3477 prior to hitting further volatility last week, sending the currency pair back to the said lows.

The British currency is now more than 65 pips at the beginning of Asian sessions and ahead of the 50 1hr SMA at 1.3282.

About Chris Miranda

Chris writes mostly about the latest in the stock market, finance, tech and business.
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