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GBP/USD Price Forecast – British Pound Continues to Press Resistance

By:
Christopher Lewis
Published: Oct 9, 2020, 14:03 UTC

The British pound rallied again during the trading session on Friday, as we continue to look at the 1.30 level with interest.

GBP/USD

The British pound has rallied again during the trading session on Friday, as we continue to try to break out above the 1.30 level. At this point, the markets are basically trading on hope that Brexit will get solved somehow. Furthermore, they are also traded on the idea that perhaps we will get stimulus out of Washington, which of course should in theory drive down the value of the US dollar. That being said, I am not overly excited about trying to buy this pair until we get a daily close above the 1.3050 level. Once that happens, then we will probably go much higher. The biggest problem of course with trading this pair is that it is driven on emotion and not necessarily reality.

GBP/USD Video 12.10.20

It is all about the latest headline in the latest Tweet as far as where we go next. Never forget that, this pair has completely divorced itself from anything relating to macroeconomics, so therefore the only thing you can do is trade the simplest potential set up, which would be the 1.30 level being a bit of a pivot. Sometimes, thinking goes out the window and you simply trade “what is.” At this point, the one thing that does seem to be the prevailing factor is that level, so I would pay close attention to that and not much else. Unfortunately, there is no way to trade with the next headline will be because we have seen games on Twitter causing algorithms to come in and suddenly pushed the pair in one direction or the other.

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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