Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

GBP/USD Video 30.10.20.


British Pound Remains Under Pressure

GBP/USD is trying to settle below 1.2900 while the U.S. dollar is mostly flat against a broad basket of currencies.

Know where GBP/USD is headed? Take advantage now with 

75% of retail CFD investors lose money

Yesterday, the U.S. Dollar Index gained strong upside momentum amid fears about the second wave of the virus which increased demand for safe haven assets and provided support to the American currency.

The U.S. Dollar Index made an attempt to settle above the resistance at the 94 level but did not manage to gain additional momentum and declined closer to 93.85. If the U.S. Dollar Index settles above 94, GBP/USD will find itself under more pressure.

Yesterday, U.S. reported that Initial Jobless Claims decreased to 751,000 while Continuing Jobless Claims dropped to 7.76 million.

The situation in the job market continued to gradually improve but it remains to be seen whether the recent gains on the job front will be sustainable amid problems on the coronavirus front. Yesterday, U.S. reported more than 91,000 of new coronavirus cases while Dr. Anthony Fauci stated that the country was headed in the wrong direction.

Technical Analysis

GBP/USD gained strong downside momentum and is trying to get to another test of the nearest support level at 1.2890. In case GBP/USD manages to settle below this support level, it will move towards the next support at 1.2815.

There are no material levels between 1.2815 and 1.2890 so this move may be fast. Despite the recent sell-off, RSI remains in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge.

A move below the support at 1.2815 will open the way to the test of the next support at 1.2780. If GBP/USD gets below 1.2780, it will move towards the major support level at 1.2750.

On the upside, the nearest resistance level is located at the 50 EMA at 1.2965. A move above the 50 EMA will lead to the test of the next resistance at the 20 EMA at 1.2980. If GBP/USD settles above the 20 EMA, it will head towards the significant resistance level at 1.3000.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.