The British currency is confused. It is trying to rise, however, it does not have enough resources for active growth. At the moment, the pound is moving by inertia, and analysts believe that it is using the energy of its previous achievements.
At the beginning of this week, sterling experienced a short-lived surge of power amid possible parliamentary approval of the Brexit Bill proposed by the British Prime Minister, Boris Johnson. On Thursday, January 9, there will be a debate in the House of Commons and during which, decide to the legislation on issues of the country exit from the EU will be discussed. One of the key issues is the possibility of postponing the transition period, which currently falls at the end of the current year.
According to experts, if the transition period for the UK is extended at least until mid-2021, this will foster interest in the British currency. On this wave, the pound can fly to a dizzying height, experts reassured. Both parties would benefit, the United Kingdom, which is guaranteed to gain access to a single European market and customs union and the EU countries, which will maintain trade and economic ties with the largest European country.
Additional support for the pound was provided by a strong report on the index of business activity in the British services sector. It turned out to be equal to 50 points, which is an excellent indicator. According to experts, this indicates the restoration of the entire services sector, whose share exceeds 80% of the UK economic growth.
Many experts expect further growth of the GBP / USD pair in the short term. Last Wednesday, January 8, buyers of the British currency fought for the support level of 1.3108, and the tandem itself plied near 1.3104–1.3105.
At the moment, the GBP / USD pair rose to 1.3130, but the tandem could not advance further. According to analysts, the pound buyers could not cope with the important task of breaking through this border and fixing above the resistance level of 1.3160.
Morning of January 9, the GBP / USD currency pair met at around 1.3113. The tandem then tried to enter the spiral of an upward trend, but it did not succeed.
Currently, the pair is moving in the range of 1.3106–1.3107, trying to get out of the tight circle of the downward flow. However, these attempts continue with varying success.
According to experts, in the near future the British currency will come out of the period of uncertainty and will begin to move up. The driver of this growth will be the implementation of the Brexit agreement which is scheduled for January 31, 2020. Experts are counting on a further upward trend in sterling and recommend buying this currency.
