British Pound (GBP) Latest: Range Trading to Persist in GBP/USD, EUR/GBP

May 12, 2020

British Pound (GBP) Latest: Range Trading to Persist in GBP/USD, EUR/GBP

GBP PRICE, NEWS AND ANALYSIS:

The GBP/USD pair and the EUR/GBP cross will likely continue to trade sideways near-term.
On the positive side, countries around the world are easing coronavirus restrictions and the US Federal Reserve is to begin buying corporate-debt exchange traded funds.
On the negative side, there are fears of a second wave of Covid-19 and concerns too about new US-China trade tensions.

GBP/USD, EUR/GBP CONTINUE TO TRADE SIDEWAYS

The British Pound continues to trade in narrow ranges against both the US Dollar and the Euro, and will likely continue to do so as traders weigh up the easing of coronavirus restrictions against fears of a second wave of the pandemic preventing a full global economic recovery.

GBP/USD PRICE CHART, TWO-HOUR TIMEFRAME (APRIL 10 – MAY 12, 2020)

In addition, news that the US Federal Reserve will begin buying corporate-debt exchange traded funds (ETFs) from today is being offset by an escalation in the US-China trade war, with President Donald Trump threatening to terminate the Phase 1 trade deal between the two countries agreed in January.