GBP/USD Price Forecast – British Pound Breaks Major Figure

Christopher Lewis
Published: Oct 28, 2020, 13:44 UTC

The British pound broke hard to the downside during the trading session on Wednesday as fears of another UK lock down start to work their way into the market.

GBP/USD Price Forecast – British Pound Breaks Major Figure

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The British pound has broken significantly lower during the trading session on Wednesday, as the fears of the coronavirus spreading throughout the United Kingdom and locking the economy down of course continue to be front and center. Furthermore, Brexit is nowhere near being settled, and it is likely that nothing good can come of the present situation when it comes to the pandemic. With that in mind, it is very likely that we will continue to see noisy and negative trading, but I still think there is plenty of support underneath that you need to pay attention to. Simply jumping into this market and selling everything could work out, but all it is going to take is one hopeful comment, and the market could turn around again.

GBP/USD Video 29.10.20

The volatility is only going to get worse between now and the US presidential election, but it does make sense that this pair would fall. After all, the United Kingdom could be locking down and the United States is not going to see stimulus in the short term. In other words, it will not be working against the US dollar. I believe at this point in time we are likely to see an increase in back-and-forth trading, but ultimately it certainly looks as if there is even more to worry about then there was just 24 hours ago. It is kind of strange, it is almost is that the markets had forgotten that there was a virus that people are still worry about. Nonetheless, sometimes it takes the markets a while to notice the obvious, and I think that is what we are seeing here.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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