The pound / dollar pair is showing sideways dynamics, being at the level of 1.3400.
Trading on the instrument is characterized by strong volatility amid the situation around Brexit. Despite the fact that the final deadline for agreeing a trade deal between the UK and the EU comes only on December 31, we can already say that the negotiations have failed. However, the parties took serious steps towards each other: London reduced the amount of the required compensation from 50% to 35%, and the EU increased its proposal from 12% to 25%.
Another factor influencing the volatility of the pair was the macroeconomic data from the United Kingdom and the United States. Thus, the level of the adjusted GDP of Great Britain in the 3rd quarter of 2020 reached 16.0% against the background of the expected 15.5%, and the GDP of the USA in the same period amounted to 33.4%, which is better than the projected 33.1%. It is also worth noting the growth in the level of business investment in the UK by 9.4% against the forecast at the level of 8.8%.
Support and resistance levels
The pair continues to trade within the local ascending channel, correcting upward after a significant decline. Technical indicators are still in a global buying state. The fast EMAs on the alligator indicator have crossed, and the histogram of the AO oscillator is trading in the positive zone.
Resistance levels: 1.3470, 1.3580
Support levels: 1.3220, 1.2900
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