GBPUSD stages a rebound after new trade deal was reached.

“New trade deal for Northern Ireland skims out impasses which lasted for several years between UK and EU.”

Pound sterling rebounds from prior low levels after UK and EU struck a new trade deal with European Union post Brexit. The new trade deal is known as Windsor Framework, which encompasses new trade rules for Northern Ireland. The deal was monumental as both parties were in dispute with regards to trade arrangement for Northern Ireland which started since Brexit was announced soon after. However, the arrangement also brings political risk to US Prime Minister Rishi Sunak, opening him up to backlash from Brexit hardliners in his party.

Technical Analysis

GBPUSD, Daily: The pair remains traded within a sideways channel while forming a strong buying zone near 1.1860 to 1.1900. We expect the pair to extend its gains in short-term, conforming to bullish signal which are bound to be formed by MACD. Nonetheless, its gains will be limited to 1.2460 unless the resistance level was being breached thereafter.

Resistance level: 1.2460, 1.3000

Support level: 1.1860, 1.1345

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