Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

The British pound has rallied significantly during the trading session on Thursday, as it looks like we are going to continue to consolidate in this general vicinity. At this point in time, it is only a matter of time before we break above the 1.3150 level. Ultimately, if the market breaks above there it is likely that we could go looking towards the 1.35 handle.

To the downside, the 1.30 level continues to offer significant support, and therefore if we were to break down below there, I think it would be interesting to see what happens next. I have a theory that we will find plenty of support underneath at the 1.2750 level which of course is a major support area that extends down to the 1.2650 level. The 50 day EMA is at the top of the range, while the 200 day EMA is at the bottom.

GBP/USD Video 14.08.20

Having said that, I do think that we probably break out to the upside first but am open to both scenarios. One thing is for sure, I have no interest in shorting this market, because the pair is certainly in an uptrend. With that being the case, there is no point in trying to short this market, and therefore I am simply either buying the breakout or purchasing value as it appears. With this, I do believe it is only a matter of time before we go much higher as the Federal Reserve continues to destroy the US dollar by flooding the market with them.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.