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GBP/USD Price Forecast – British Pound Pulls Back

By:
Christopher Lewis
Published: Sep 3, 2020, 13:57 UTC

The British pound pulled back during the trading session on Thursday, to reach down towards the 1.3250 level.

GBP/USD

The British pound fell during the trading session on Thursday, reaching towards the 1.3250 level. This is an area that has been resistance recently, so it is not a huge surprise that it might offer a bit of support here. Nonetheless, this is a market that is most certainly in an uptrend and with the jobs report coming out on Friday, I would not anticipate major changes in overall attitude. If anything, it could boost the British pound via US dollar selling which has essentially been the major reason for the market moves to begin with.

GBP/USD Video 04.09.20

I believe that the 1.30 level is a massive support level, so if we were to break down below there could change a lot of things but I would anticipate seeing that in the next couple of days to say the least. The 50 day EMA is also there, so that also makes it even more important.

To the upside, the 1.35 level has offered a significant amount of resistance, so therefore it is not a huge surprise that we may have to pull back in order to build up the necessary momentum. Furthermore, the market is likely to look at that level as a significant psychological barrier, so that being said the fact that we formed a shooting star that area is not a huge surprise to me either. I think once we get through the jobs number, then we can start to focus on whether or not the US dollar selling off. If it is, then that should help propel this market back towards the 1.35 handle.

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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