The GBP has turned bullish recently, after being pretty bearish in September and October, due to the Brexit problem coming back into the spotlight, after the attention was all on coronavirus until August. The vaccine news also helped the GBP climb higher, since the benefits to the UK economy would be great, given the major negative impact the lockdowns are having.

So, the GBP/USD has been bullish, and moving averages have been providing support, with the 20 SMA taking over that job this week. The price is back down to this moving average now, after comments from Ireland’s Coveney, that the Brexit talks will be pushed again.

Ireland’s Coveney Commenting on Brexit

• Brexit talks likely to go into next week
• Both sides need to compromise on fisheries in Brexit talks
• Some progress made on level playing field issue
• But quite possible this could fall apart – it would not shock me