Correlation between the British currency and oil | 04 December 2020

04 December 2020, GBP/USD

Correlation between the British currency and oil

GBPUSD trading plan:

A bullish rally in the oil market will have a positive impact on the value of the British currency as assets are correlated with each other. The Organization of the Petroleum Exporting Countries and allies agreed at Thursday’s ministerial meeting to ease production cuts by 500,000 barrels per day (bpd) from January 2021. The increase sees OPEC+ production reduced to 7.2 million bpd, or 7% of global demand, from January onwards, compared to the current 7.7 million bpd cuts. OPEC+ will meet once a month to review conditions and monthly increases will not be greater than 500,000 barrels per day.

Investment idea: Buy 1.3448 and take profit 1.3500.

David Johnson
Analyst of «FreshForex» company
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