GBP/USD Price Forecast – British Pound Quiet

The British pound has pulled back a bit during the trading session on Friday, only to turn around and show signs of life again. Ultimately, this is a market that I think continues to see a lot of volatility and even though the British pound is somewhat elevated, I think we are not quite ready to break out. Quite frankly, the markets are probably exhausted due to the fact that the US election continues to drag on and therefore traders, although pricing in a Joe Biden win, still has a certain amount of uncertainty baked in. There are almost undoubtedly going to be lawsuits, and that of course is not going to help the situation.

GBP/USD Video 09.11.20

The British pound is a bit unique in the sense that there is also Brexit to worry about, so that something that should be kept in the back of your mind. With that being the case, I think it is only a matter of time before we see some type of noisy nonsense step into the picture and cause headaches. Overall, I believe that this is a market heading higher, but maybe in the longer term. I would not be surprised at all to see a little bit of a pullback, perhaps down towards the 1.30 level where the buyers step back in. After all, it is not going to take much coming out of the Brexit nonsense to get people worried about the British pound again.

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