GBP/USD Price Forecast – British Pound Continues to Hang On

GBP/USD Video 11.09.20

The British pound went back and forth during the trading session on Thursday again, as we continue to worry about the overall attitude of politicians when it comes to all things Brexit related. As the headlines continue to be contentious as both London and Brussels are playing games in public. Ultimately, we are going back to the old regiment of trading latest headline or rumor on Twitter, so I think the one thing you can count on is an extreme amount of volatility when it comes to this pair.

Because of this, I think that the most important thing that you can do when it comes to trading the British pound is keep your position size small. That being said, we are still very much in an uptrend and it should be noted that the 50 day EMA seems to be making a significant difference. Because of this, one should be very cautious about putting too much money into the market quite yet, but if we break above both the hammer from Wednesday and Thursday, that would of course be a very bullish sign and could send this market towards the 1.3250 level rather quickly.

On the other hand, if we were to break down below the lows of the last couple of sessions, that would be extraordinarily negative. In that scenario one would have to think that the market would very likely go looking towards the 200 day EMA underneath, which would be closer to the 1.2750 level, an area that has been important in the past.

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