The pound is trapped in the grip of conflicting fundamental factors. In the morning, the British currency received unexpected support from the Bank of England, which allowed an increase in the interest rate next year in spite of everything. However, it was already in the afternoon that the GBP/USD bears were able to seize the initiative for the pair, against the backdrop of the speech of Queen Elizabeth II in the walls of the British Parliament. Brexit's political prospects are again worrying market participants, although parliament has not yet had time to approve the deal, and London and Brussels have not even begun preliminary negotiations as part of the transition period. But traders live "the day after tomorrow", evaluating the prospects for concluding a trade agreement. Thus, the comments of top British politicians only increase nervousness about this, overshadowing the influence of all other fundamental factors.

Nevertheless, let's start everything with the December meeting of the Bank of England. To the surprise of most traders, the meeting of the members of the English regulator took place on a major note. The central bank could increase pressure on the pound by allowing interest rates to decline early next year. Recent macroeconomic reports have shown a slowdown in key indicators, so the Central Bank had appropriate arguments to soften its rhetoric. However, the Bank of England provided an opportunity for the British economy to get out of the "red zone" on its own, without additional incentives in the form of QE or lower rates.

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