18 May 2020, GBP/USD
GBPUSD trading plan:
We are expecting an uptrend to develop. Foreign investors sold a record amount of U.S. Treasury bonds and notes for the month of March, according to U.S. Treasury Department data, as the COVID-19 pandemic caused a dislocation in the market that saw liquidity dry up. Foreigners sold $299.346 billion in Treasuries in March, a record high, compared with foreign buying of $4.885 billion in February. This is a negative signal for the U.S. dollar. Additional support for the British currency will be provided by a bullish rally in the oil market. The run toward $32 BRENT — an important psychological mark for oil bulls —- came on the back of China’s resurgent industrial production data underscoring a recovery in factory activity in the world’s largest oil importing country.
Trading recommendation: Buy 1.2100 and take profit 1.2158.