GBP/USD Price Forecast – British Pound Has Wild RideThe British pound went back and forth during the trading session on Thursday, as more noise comes into the fray involving Brexit.
The British pound has been all over the place during the trading session again on Thursday as algorithmic bots jumped in the market based upon a few headlines suggesting that perhaps more progress is being made in a deal when it comes to Brexit. This of course has been the bane of existence for most traders of the last couple of years, coming in and out of the overall psyche of the market. Going forward, it is obvious that we are back in the phase of trying to figure out exactly what the market is going to do, in relation to the latest headline. It is obvious that Brexit is front and foremost on the minds of traders based upon the sudden reaction that we got during the day on Thursday, and at this point it looks like we are making a serious attempt to threaten the 1.30 level.
GBP/USD Video 02.20.20
Having said that, it is very difficult to get overly excited about this pair to the upside until we get a daily close above the 1.3050 level. At that point, then we would have a very bullish signal as we would likely go looking towards the 1.34 handle again. To the downside, the 200 day EMA should offer support, but at this point it is anybody’s guess as to where we go next, it is quite literally going to depend on the next headline. Because of this, I am not trading the British pound until we get a daily close above the 1.3050 level, or if we break down significantly. In this area it seems to be a bit of “no man’s land.”
For a look at all of today’s economic events, check out our economic calendar.