Fundamental
COVID cases: Reported cases of COVID has dropped 66% yesterday (Nov 24) from the peak on Nov 12. Effective lockdown in the UK contained the virus spread really well. The hit on retail sales could be smoothed by the upcoming Thanksgiving and Christmas.
Brexit: According to EU ambassadors, the Brexit deal is close to being finalized. Although there are some details waiting for negotiation with EU, UK is in good process with lots of countries such as Canada and Spain. The indirect effect of Biden's win also makes no-deal Brexit more impossible, and therefore encourages the faith of the market to a bright Brexit deal.
Janet Yellen as the potential Treasury Secretary raises the market's expectation on more easing policies and fiscal subsidy to the US. With the Dollar remaining weak, GBP has a strong uptrend against the USD.
Technical
An upward sloping tunnel has been effective since the rebound at 100MA on Sep 23 (two-month low). RSI is going up but not yet reach a sell signal, as well as the MACD indicator. It confronted a short-term resistance from the peak at the end of August, but a positive attitude from the market is expecting a breakthrough.
Source: TradingView
Source: Google
