The reduction of geopolitical tensions | 14 October 2019

14 October 2019, GBP/USD

The reduction of geopolitical tensions

GBPUSD trading plan:

The reduction of geopolitical tensions will have a positive impact on the real value of the British currency. EU officials said that British Prime Minister Boris Johnson had indicated he was prepared to make sufficient concessions to allow detailed talks to begin. At issue are the prime minister’s plans to take Northern Ireland out of Europe’s customs union and give Stormont, its power-sharing assembly, a veto over the arrangement. Both sides cautioned that much work remains to be done if Britain is to leave the EU by Johnson’s Oct. 31 deadline. Capital inflows into “high-yielding” assets will provide additional support to the British currency.

Trading recommendation: Buy 1.2585 and take profit 1.2644.

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David Johnson
Analyst of «FreshForex» company
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