Trade Deal between EU and UK is a good news for traders. 2020 has played havoc with the capital as well as the emotions of Forex traders. GBP/USD suffered greatly. Pandemic mercilessly crushed all the hopes of the newbies in forex trading of becoming millionaires. Now the brutal year 2020 is about to end in a couple of days, it is time to wait for what 2021 will offer. In such a scenario, a trade deal is a ray of hope for the traders of Pound.
GBP/USD and 2020:
European Union and United Kingdom has finalized a mutually beneficial trade deal. Such a positive economic step will positively influence the trading of Pound. Thus you can say that the New Year is about to open new horizons for GBP/USD. 2020 has seen an extreme level of twisting and turning in Forex trading. Economic uncertainty after the first quarter of 2020 has never allowed the traders to relax for even a single moment. 2020 has proved to be a bumpy ride for Forex traders. GBP is definitely no exception.
Trade Deal and New Year:
New Year is about to knock at your door. New hopes and new expectations will replace the old ones.at such a crucial time, the news of a trade agreement is just like water for the victims of heat stroke. Recently it seems relaxing for GBP/USD. This pair seems to extend further its journey of gains in January 2021 as well. At first it seems to move along 1.35 but then a long-term higher jump awaits it. Boris Johnson, The Prime Minister of United Kingdom, is likely to win the position. After this, GBP is bound to reach the 1.40 in long-term scenario or it can even cross 1.43. You never know what comes next.
Less charming USD Vs GBP:
The gains of Pound will increase in this situation but at the same time, USD will not enjoy its typical safe-haven status. Therefore now USD is a less charming currency for traders. Now the traders are turning their attention on EURO, GBP and AUD instead of Dollar. Since the second half of December, GBP is already enjoying the support of traders. GBP/USD is trading at the greatest point of the year right now. As the economic factors suggest, this ride of gains will extend further.