The Pound will be sensitive to next machinations in the Brexit imbroglio this week while the Dollar looks to tax reform for a boost. Charts suggest Sterling has the advantage.
The Pound is pushing higher against the Dollar as Brexit mists clear and negotiators inch towards an accord, whilst in the US the same goes for tax reform; the charts, meanwhile, are pointing to more Pound strength.
The passage of Tax Reforms in the US and Brexit in the UK could be the main factors influencing the Pound-to-Dollar in the week ahead, whilst charts tell a story of Sterling strength and Dollar weakness.
The Pound-to-Dollar is currently stuck in the middle of a range and with the US Thanksgiving Day holiday this week and limited data of any importance for either currency it could very well remain a sideways market.
The Pound-to-Dollar is likely to be the focus of intense political speculation in the week ahead, however, we add an analysis of market prices to the mix, in a bid to estimate direction.
GBP/USD continues sideways following last week's Bank of England meeting, and with little market-moving data in the week ahead the pair could continue that way, but eventually, a downside break is favoured, in line with the prior trend.
Pound Sterling is showing bullish potential against the US Dollar with the GBP/USD appearing to have shifted its short-term trend. But potential news on taxes from US President Donald Trump could inject volatility into the market this week.
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