The uptrend in oil is positive for the pound

11 June 2021, GBP/USD

The uptrend in oil is positive for the pound

GBPUSD trading plan:

Brent topped $72 a barrel this week for the first time in more than two years. The market is firming in a bullish structure. The prompt time spread for Brent was 55 cents in backwardation -- where near-dated prices are more expensive than later-dated ones. That compares with 38 cents on Monday. Oil demand will jump by about 5 million barrels a day -- or roughly 5% -- in the second half of 2021 compared with the first half, according to a report from OPEC. This is a positive signal for oil and the British currency, as the assets are correlated with each other.

Investment idea: buy 1.4162 and take profit 1.4225.

David Johnson
Analyst of «FreshForex» company
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