GBP/USD Price Forecast – British Pound Pulls Back Towards Major Figure
The British pound pulled back a bit during the trading session on Tuesday, reaching towards the 1.30 level. The 1.30 level of course is an area that has caused quite a bit of resistance in the past, just as well as it has caused support previously. At this point, it is very likely that we will see a lot of interest in this area, so therefore I am looking for a short-term buying opportunity based upon the fact that this area has attracted so much attention. However, if we break down below there it is likely that the market could go down to the 50 day EMA. Ultimately, this is an indicator that a lot of people will pay attention to for a longer-term trend.
GBP/USD Video 14.10.20
Underneath, there is a massive amount of support between the 50 day EMA and the 200 day EMA. Ultimately, this is a market that I think continues to see a lot of noise, mainly due to the fact that we have a lot of questions when we come down to Brexit, and of course the idea of whether or not some type of deal will be put together. That being said, the market is likely to see quite a bit of support just below, so I will be looking at the hourly chart or perhaps the four hour chart in order to get long.
I do not have any interest in shorting at the moment, simply because we have made a “higher high.” Ultimately, expect this market to continue to be choppy but right now it appears that the most important thing that people are paying attention to is the potential fiscal stimulus coming out of the US.
For a look at all of today’s economic events, check out our economic calendar.