GBP/USD holds onto weekly gains above 1.3140 as Biden nears presidency

• Pound flat versus USD on Friday, lower against EUR.
• GBP/USD heads for highest weekly close in months.

The GBP/USD is about to post the highest weekly close since late September. On Friday it is holding onto gains, trading steady around 1.3130/40 as market participants focus their attention on the US elections.

The pair has been trading sideways all day and continues to do so, now testing the highs, above 1.3140 as the US dollar remains weak. The key driver is the US election. Former vice president Joe Biden is near the 270 electoral votes needed to win the presidency. There have been speculations about the possibility of President Trump accepting the defeat. That has been supportive of risk appetite.

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The US employment report came in above expectations with a sharp decline in the unemployment rate, even as the labor participation rate rose. The positive numbers had no impact on the US dollar. Neither did Thursday’s Fed and Bank of England decisions.

Technical outlook

Cable managed during the week to break above 1.3070 but it has failed at the 1.3150 barrier that is the key level to break on the upside. The bias continues to be tilted to the upside.