Forex Fundamental Analysis – Correlation between oil and British currency


GBPUSD trading plan:

We are expecting the development of an uptrend in the oil market. This is a positive signal for the British currency, since there is a correlation between the pound and oil. The Railroad Commission of Texas will hold a hearing that may result in limits to the state’s oil production. The hearing at the state agency, which regulates the oil-and-gas industry in Texas, comes not long after the historic decision by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to cut oil production through April 2022. “We are asking for a 20% [production] cut until September 30 with the Texas Railroad Commission,” Scott Sheffield, chief executive officer of Pioneer Natural Resources said. This is a positive signal for the oil market!

Trading recommendation: Buy 1.2530 and take profit 1.2595.

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