GBP/USD Price Forecast – British Pound Slams Into Support

The British pound fell hard during the trading session on Monday, reaching down towards the 1.30 level as we have seen significant support there in the past. This is an area that is also supported by the 50 day EMA, so I think it is only a matter of time before the buyers come back in and support this market. That being said, if we do break down below the 1.30 level then it opens up a potential move towards the 1.2750 level. That is another major area of confluence when it comes to structure that could come back the market.

GBP/USD Video 09.09.20

The strength of the candlestick is something that should be paid attention to, as we have crashed rather hard, but ultimately this is an area that should attract enough attention that people will be clearly looking at this pair. With this being the case, I fully anticipate that we should get some type of bounce, and that it is only a matter of time before the buyers step in and pick this up. A lot of what we are seeing here is noise coming out of Brexit headlines, which quite frankly is nothing but drama at this point.

With that being the case, we have seen more than once that the Brexit can cause headaches, but at the end of the day as leaders bicker traders eventually pay attention to what is, and not what is being said. I anticipate that this might be another one of those opportunities. Expect volatility, but I would expect buyers to return.

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