FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
59,516,610Confirmed
1,402,042Deaths
41,157,776Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
GBP/USD

The British pound has pulled back a bit during the trading session on Wednesday but sees a bit of support near the 1.28 level on the short-term charts. All things being equal though, the market is seen resistance at the 50 day EMA which is colored in red, just as we are seeing a bit of support near the 200 day EMA which is colored in black. All things being equal, we are grinding a bit lower, perhaps in a bit of a channel. It is because of this that I like fading short-term rallies, especially if we get some type of bigger “risk off” type of scenario.

GBP/USD Video 01.10.20

Looking at this chart, if we can break down below the 1.27 handle, it will more than likely open up a bit of a “trapdoor” to the 1.25 handle. I do not have any interest in buying this market, because quite frankly this is a market that looks very sick and of course there are a massive amount of reasons to think that the British pound could struggle. We have Brexit still going on and of course we have all kinds of issues.

The United Kingdom is talking about locking down parts of its economy again, even though it has been shown not to make that big of a difference. Regardless of your opinion on this, the one thing that most people will recognize is that an economy that is locked down certainly does not perform well. With that in mind, I do believe that the British pound is likely to continue going much lower, but that does not necessarily mean that we will get the occasional rally.

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

Advertisement
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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US