GBP/USD Price Forecast -British Pound Testing Major Figure

British pound traders started buying again at the beginning of the week on Monday, reaching towards the 1.30 level. Ultimately, the market continues to pay attention to this round figure in order to get some type of guidance. Quite frankly, with Brexit out there still causing headaches for a lot of traders, I believe that this is a market that will remain very volatile. The 1.31 level above is going to be the top of the overall range, but clearly the 1.30 level has been an area that has attracted a lot of attention.

GBP/USD Video 20.10.20

To the downside I see the 1.29 level offering a little bit of support, as well as even more support down at the 1.2750 level. That being said, the 200 day EMA is near there as well so that could cause a bit of support as well. Ultimately, I think that the market is going to continue to chop back and forth as we see a lot of noise. I do believe that the British pound has very serious risk out there when it comes to the idea of Brexit going right or wrong, and of course the US dollar looks to be making an argument to stabilize.

At this point, I do think that we are more likely to pull back then go higher, but quite frankly the real move will come later once we finally get some type of resolution to whether or not there is going to be a deal when it comes to Brexit. In the meantime, expect the latest headline or rumor to move the market back and forth as we continue to see volatility pick up.

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