​GBP/USD Sees Future Resistance Despite Gains from Brexit Progress

WikiFX News (14 Nov.) - This week's GBP/USD once rallied to 1.3300, an over two-month high, because of the progress in Brexit and the positive news about the Covid-19 vaccine. Nonetheless, the pair may see resistance waiting in future trading.

According to the UK's Office for National Statistics, the country's unemployment rate was 7.3% for October, slightly better than expected, while the rate of wage growth raised to 1.3%.

In addition, headlines stated that the UK government has stocked up on the Pfizer vaccine. The GBP/USD pair once climbed to an intraday high of 1.3278 in the wake of the good news on the Pfizer vaccine. However, Britain's Health Secretary Matthew Hancock expected the bulk of the rollout to be in the first half of next year.

In terms of Brexit, the House of Lords moved to strip two controversial clauses from the Internal Market Bill. Such a concession indicates an agreement conducive to the UK is out of reach, which could put pressure on the long-term pound.

GBP/USD has been testing the 1.3000 barrier, while the resistance for the downward trendline since 2007 stands at around 1.3400. The pair price could fall back to 1.2650-1.2800 before it effectively breaks through 1.3400.

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Chart: Trend of GBP/USD