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

The British pound has had a nice move to the upside during the trading session on Tuesday as it reached towards the 1.36 level rather early. That being said, the market still has a lot of noise just above, so I think it will continue to struggle a bit but at this point in time I believe that the market certainly looks as if it is a “buy on the dips” type of market, and I do think that will continue to be the theme going forward. Not only do we have optimism out there in the market when it comes to the idea of the global growth trade, but also, I think that stimulus in America still has further to go, so that will continue to look at the US dollar falling. That could be a major driver of the British pound going higher.

GBP/USD Video 13.01.21

It should also be noted that now that we are through Brexit, people will start to focus more on six months down the road once we are through the vaccine situation when it comes to Great Britain, and with a historically cheap British pound, it does tend to favor an upward move as well. The 50 day EMA underneath should continue to offer support, painted red on the chart. If we can break above the 1.3750 level above, then I think it opens up the possibility of a move towards the 1.40 level, which of course is a large, round, psychologically significant figure and therefore could cause a bit more trouble. I have no interest in shorting the British pound at the moment, as I do not see the catalyst for some type of meltdown.

Know where GBP/USD is headed? Take advantage now with 

75% of retail CFD investors lose money

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.