GBP/USD Price Forecast – British Pound Awaits Brexit Outcome

The British pound continues to be very noisy, as concerns about whether or not there is a Brexit deal are front and center when it comes to trading this currency. Right now, it looks as if there are a lot of problems out there just waiting to cause issues but at the end of the day it is very likely we will continue to see traders out there trying to find reasons to push the British pound higher. After all, this is a market that has been historically cheap for months now, even with the recent surge to the upside. With that being the case, it is very likely that we are going to continue to see noisy conditions, but ultimately this is going to come down to whether or not the EU and the UK can knock off the nonsense and finally signed a piece of paper.

GBP/USD Video 08.12.20

There are a couple of days before it becomes somewhat impossible to get an agreement before the UK officially leaves the temporary trade agreement, and of course as long as there are politicians involved there is a good chance that somebody somewhere will do something stupid. However, at the end of the day they all want to be reelected and blowing up the economies of the various countries involved will probably not do much for that outlook. With that in mind, I do believe that we are more than likely going to see some type of deal, but obviously there is going to be a lot of noise between now and then as far as “will day, or will not they?”

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