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GBP/USD – Pound Steady on Last Day of the Year

It has been a volatile year for the pound, marked by extreme highs and lows. With the post-Brexit era about to begin, we are likely to see further swings from the currency early in 2020.
Kenny Fisher
Major Resistances Are Broken – Time To Go Up

GBP/USD is trading sideways in Tuesday trade. There are no British or U.S. events on the last day of the year, so traders can expect limited movement from the pair until after New Year’s Day.

Volatile 2019 for Pound

The pound has shown some strong swings in December, a microcosm for the pound’s fortunes in 2019. GBP/USD fell as low as 1.1958 in early September, when Brexit uncertainty was at a fever pitch and the political scene in London was one of disarray. Only three months later, the pound soared above the 1.35 level, as the markets were elated with Boris Johnson’s surprisingly easy election win. This has paved the way for a Brexit departure at the end of January. However, we could well see more volatility from the currency early in the New Year, as the transition period after Brexit promises to be uneasy and difficult, as London and Brussels are already arguing whether 11 months is enough time to conclude a new trade deal.

Technical Analysis

GBP/USD is currently just above the 1.3100 line, which had served as resistance until Monday. Above, there is resistance at 1.3180, which is protecting the 1.32 level. On the downside, we find support at 1.3030, followed by the round number of 1.30.

GBP/USD 1-Day Chart

 

Pacific Currencies – Daily Summary

USD/CNY

USD/CNY continues to lose ground, as the yuan as hit a 2-week high. Currently, the pair is trading at 6.9663, down 0.28% on the day. Chinese Manufacturing PMI, remained steady at 50.2, edging above the estimate of 50.1 points. This has given the yuan a lift on Tuesday.

AUD/USD

Aussie Punches Past 70

AUD/USD hasn’t missed a beat this week and continues to gain ground. Currently, AUD/USD is trading at 0.7010, up 0.24%. The pair crossed above the symbolic 0.70 level in the Asian session – this is the first time that the pair is above this line since occurred since mid-July.

NZD/USD

With a bank holiday in New Zealand on Monday and Tuesday, traders can expect a slow start to the week for the New Zealand dollar. Currently, NZD/USD is trading at 0.6731, up 0.05% on the day. The pair is at its highest level since mid-July.

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