Positive signal for the British currency | 06 May 2020

GBPUSD trading plan:

Britain's Treasury and Bank of England are discussing an emergency funding scheme to help payments to cash-starved small businesses. Under the plans, which are at an exploratory stage, the Covid Corporate Financing Facility would be amended to promote faster payments of SMEs' invoices, the report said. This is a positive signal for the British currency! Additional support for the pound will be provided by a bullish rally in the oil market. The WTI contango has narrowed and is not anymore in a super-contango situation. This is a positive signal for the oil market!

Trading recommendation: Buy 1.2425 and take profit 1.2475.