FX.co ★ Trading idea for the GBP/USD pair

Brexit negotiations ended again without much progress, and this is because both parties still failed to compromise over a trade agreement.

Despite that, the GBP / USD pair remained afloat in the market, which is also very surprising, considering that other currencies, the euro for example, has fallen against the US dollar.

Below is the result of the failed negotiations last Friday:

As we can see, instead of a large bearish candle in the daily chart, a "spinning top" pattern has formed, which speaks more about uncertainty, and not about the panic of investors from the pound.

If we look at the shorter time frames, an even more interesting picture emerges:

The pair is clearly being methodically bought around price levels 1.28-1.285, and this has been happening for three weeks already.

Taking into account this scenario, the optimal strategy is to open long positions and set it towards the level of 1.35.

In addition, there remains hope that a post-Brexit trade deal will be signed, as UK Prime Minister Borish Johnson continues to make it clear that the UK is open for a compromise. Michel Barnier and David Frost will also exchange dialogue again on this issue early next week.

Best of luck!