GBP/USD Price Forecast – British Pound Takes Off Into Resistance

The US dollar has taken a bit of a beating overall during the trading session on Thursday as most currencies in the world have gained against it. The British pound of course was no different after initially dipping below the 50 day EMA. Now that traders are taking a look at the possibility of getting past the US election, there is a little bit of positivity out there when it comes to risk assets. However, the question now will be whether or not we can get some type of movement forward when it comes to stimulus.

GBP/USD Video 06.11.20

Mitch McConnell suggests that the US Senate will have stimulus as its first priority when they get back, but that is a while away. Furthermore, it is a bit of a lame-duck session so it will be interesting to see how that plays out. Beyond that, the election still looks likely to be contested on multiple fronts, so I think we have a lot of noise ahead of us. And beyond that, let us not forget the fact that there is still Brexit to worry about which looks to be just as messy and distractive as it always has been.

With that in mind, I think this pair is going to struggle to take off to the upside and it is very possible that we have the possibility of a pullback from here and a return towards the 50 day EMA. However, if we were to break above the 1.32 level you would have to stand up and pay attention. At that point, we probably go looking towards the 1.34 level.

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