The British pound posted gains on Thursday. This came on the back of news that cross-party government measures were being taken to avoid a no-deal Brexit. The sterling has been in a steady decline since PM Johnson took a hard stance on the Brexit. But, with the latest developments now looking to avoid a hard Brexit, the sterling managed to bounce on the news.
GBP/USD Has Likely Formed a Bottom
Price action in the currency pair has been relatively stable after trading near fresh historic lows. The GBPUSD broke out to the upside from the descending wedge pattern. However, the momentum remains rather weak. Further gains are required in order for the currency pair to maintain the momentum. There is also a risk that the GBPUSD could break the support area of 1.2082 – 1.2026 unless a higher low is formed.
