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Feb 09 - 09:55 PM

GBP/USD - COMMENT-Sterling Trends North, But Irish Border Issues Loom

By Andrew M Spencer  —  Feb 09 - 08:03 PM

Sterling has been resilient in 2021, underpinned by the UK government's speedy vaccine rollout, after a poor performance in controlling the coronavirus and track-trace systems.
This positive sentiment may be derailed by Brexit implementation problems surrounding the Irish border.

The border between Northern Ireland and European Union member Ireland was always a sticking-point in Brexit negotiations as the sanctity of borders has long been a cornerstone of EU policy, in order to protect members from perceived unfair competition.

Britain has not successfully implemented the agreed Brexit protocol for goods entering Northern Ireland to face the same checks as in the EU.
They are now looking for concessions
nS8N2K0033nL8N2KF6YZ, but the EU are unlikely to change the deal until the UK has actually fulfilled what was agreed nL8N2KF2MA.

The scene is set for a showdown, as the UK flexes its newly acquired independence, and the EU protects its borders.

Meanwhile, the dollar has come under pressure, as U.S. President Joe Biden's substantial coronavirus relief package takes shape nL1N2KF1QJ, taking GBP/USD to fresh highs not seen since April 2018.

Technical studies are bullish with 5, 10 and 21 daily weekly and monthly moving averages heading north with blue sky on the charts until 1.4303, 50% of the 2014-2020 fall.


gbp feb 10 Click here

Source:
Refinitiv IFR Research/Market Commentary

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