GBP/USD Daily Forecast – Traders Make Their Final Bets On Brexit

GBP/USD Video 11.12.20.

British Pound Tries To Rebound Against U.S. Dollar

GBP/USD is trading near 1.3300 while traders wait for the outcome of Brexit negotiations which are due to be finished by the end of this week.

British Prime Minister Boris Johnson has recently stated that there was a strong possibility of a no-deal Brexit. This scenario will likely put material pressure on the British pound which is set to remain volatile during today’s trading session as foreign exchange market traders make their final bets on Brexit negotiations.

Meanwhile, the U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is moving towards the yearly lows at 90.50. If the U.S. Dollar Index settles below this level, it will gain additional downside momentum which will be bullish for GBP/USD.

Yesterday, UK reported that Industrial Production grew by 1.3% month-over-month in October while Manufacturing Production increased by 1.7%. Both reports were better than analyst estimates.

Today, GBP/USD will remain very sensitive to any Brexit news so traders should be prepared for fast news-driven moves.

Technical Analysis

GBP/USD is currently trying to get to the test of the nearest resistance level at the 20 EMA at 1.3330. If this test is successful, GBP/USD will move towards the next resistance at 1.3400.

There are no important levels between 1.3330 and 1.3400 so this move may be fast. In case GBP/USD manages to settle above the resistance at 1.3400, it will head towards the resistance at 1.3440.

On the support side, the nearest support level for GBP/USD is located at 1.3300. If GBP/USD declines below this level, it will move towards the support at 1.3270.

A successful test of the support at 1.3270 will open the way to the next support level at the 50 EMA at 1.3225. If GBP/USD moves below the 50 EMA, it will head towards the support at 1.3180. It should be noted that GBP/USD may easily move between levels as traders react to Brexit news and rumors.

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