Trades at highest level since September 8
The GBPUSD is moving higher as Prime Minister Johnson announces new coronavirus plan. The plan will include 3 tiers, medium high and very high. The schools and retail will remain open, but for areas in the very high area, new restrictions would be imposed.
At the same time BOE Haskel is on the wires saying
- We are keeping an open mind on suitability of negative rates
- negative rates may hit bank margins but could be offset by positive effect for economy
The traders are pushing the GBPUSD higher reaction to the plan. Looking at the daily chart, the price is trading at the highest level since September 8 and is moving closer to the 50% retracement of the move down from the September 1 high at 1.30777. A move above would open the door for further gains from a technical perspective
Drilling to the 4 hour chart, the price has moved away from the swing high going back to going September 10 at 1.30339 today, and has moved above the topside trend line at 1.3061 more recently. Stay above those levels is more bullish for the pair.