The British currency is not easy: the situation with Brexit continues to prevail over it, complicated by negotiations with Brussels. Thus, experts are counting on a favorable outcome, but at the moment, the pound is experiencing the consequences of the decline, with a certain reversal in its dynamics.
According to analysts, the situation in the debt market indicates a trend reversal in the GBP / USD pair. Recently, market participants have been actively selling the pound. The current state of affairs was in the hands of the "bears," and the "bulls" were practically left with nothing. However, experts do not see any special reason for buying the pound. According to analysts, if the pound does not enter the upward spiral, then it will be possible to sell it when it reaches the level of 1.2904–1.2905. It can be noted that today, February 11, the GBP / USD pair just reached this level.
A day earlier, on Monday, February 10, the GBP / USD pair was in low positions, which is particularly in the range of 1.2884–1.2885. Currently, experts record its systematic growth. Thus, experts fear a "bearish" absorption of the pound, which has become relatively stable after the collapse to its lowest level since November 2019.
The analysts consider its growing rise after a long decline to be a feature of the new "British" quotes reversal. In many respects, this is facilitated by the favorable situation in the debt market, when the yield spread of 10-year state bonds of Great Britain and the USA is steadily increasing. According to experts, a positive trend in the government bond market provides significant support to the British currency.
The current information background also contributes to the dynamics of the pound. The focus of the market is the upcoming UK deal with the European Union. Many traders are confident that the United Kingdom will not be able to negotiate with Brussels until the end of 2020. This causes fears of the bulls, which is why the sales of the pound have stalled. To make the problem worse were the comments of Boris Johnson, the British Prime Minister, about the fact that the country does not intend to obey the Eurobloc after Brexit. At the same time, it is difficult to take into account the interests of both parties: London wants a fair trade agreement from the EU, and Brussels requires certain guarantees from the UK and cooperation in many areas. Many experts believe that the UK authorities are in a dangerous position, which is why negotiations on Brexit are not yet done.
Moreover, a relative positive is expected from the upcoming statistics on UK GDP and industrial production in the country, which will be released today, February 11th. Both strong growth and a deafening decline in the pound are possible, depending on the results.
In this regard, some analysts are counting on the restoration of the "Briton", believing that no radical negative changes in its dynamics are expected. Their opponents are convinced that changes in the dynamics of sterling are inevitable. Both camps agree that the upcoming changes are possible with both a plus sign and a minus sign, while recording a gradual increase in the British currency.
