The additional voluntary cuts oil | 12 May 2020

GBPUSD trading plan:

We are expecting a bullish rally in the oil market, which will have a positive impact on the value of the British currency. Oil futures rose boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June in a bid to help drain the glut in the global market that has built up as the COVID-19 pandemic crushed fuel demand. The United Arab Emirates and Kuwait committed to cut production by another 180,000 bpd in total. Kazakhstan has also ordered producers in large and mid-sized oil fields including Tengiz and Kashagan to cut oil output by around 22% in the May to June period.

Trading recommendation: Buy 1.2310 and take profit 1.2366.