GBP/USD Price Forecast – British Pound Awaits Brexit News Again

The British pound has had a relatively negative start to the trading session on Friday, crashing into the 1.35 level again. However, we are starting to see this level offer a little bit of support so it is a good sign that perhaps we can continue to go higher given enough time. Ultimately though, you need to keep an eye on headlines and that is always going to be difficult due to the fact that the negotiators between the two sides on the Brexit deal are essentially using the media to air out there grievances. This makes for a very dangerous and difficult trading environment as algorithmic headline scanning robots place trades back and forth based upon these words.

GBP/USD Video 21.12.20

That being said, I do believe that it is only a matter of time before we see a bigger move to the upside, perhaps in a bit of a “relief rally” at finally getting some type of resolution. Unfortunately, between now and then it is going to be very difficult to deal with this market, so you need to be very cautious and understand that you are playing a very dangerous game. With this being the case, you need to look for dips as buying opportunities but use small positions because you can be up one minute and get completely wiped out the next. To be honest, the best route of attack when it comes to the British pound is to probably avoid it altogether. Nonetheless, we are in an uptrend so one would think that we continue.

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