GBP/USD Price Forecast – British Pound Continues to Look Upside

The British pound initially gapped lower during the trading session on Monday, but then turned around to break higher before giving up the gains again. That being said, at the end of the day the market is still sitting above the 1.30 level, a large, round, psychologically significant figure that markets will pay close attention to. If we can break above the candlestick during the session on Monday, then the market is likely to go much higher. Keep in mind that the Friday candlestick certainly gave us that impression as we closed towards the top of the range and that almost always means that you get some type of continuation.

GBP/USD Video 13.10.20

Looking at this chart, there is a lot of noise above and clearly people have to worry about the Brexit situation still, even though the market has chosen to believe that there is going to be a solution. At this point, one would be foolish to underestimate the ability of politicians to screw the entire thing up. With this, I would anticipate that we are going to continue to see a lot of noisy trading, but it appears that we are at the very least trying to grind higher.

Unfortunately, when trading the British pound, you also have to worry about the occasional headline that could throw the market in the complete disarray, as we had seen three years ago, and starting to see now. Lockdowns in the United Kingdom certainly will not help the British pound longer term, but right now it looks like the buyers are still trying to make a stand.

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