FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
18,440,689Confirmed
697,100Deaths
11,672,261Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
GBP/AUD

The British pound initially pulled back a bit during the trading session on Friday before turning around and smashing into the 50 day EMA. As we got there, the market did pull back a bit, and it should be noted that we continue to see a lot of noisy behavior overall. If that is going to continue to be the case, then I think it is only a matter of time before we see massive selling pressure. However, if we break above the 50 day EMA, then it is likely that we will then go looking towards the 1.25 level. At that point, I would anticipate seeing even more resistance.

GBP/USD Video 01.06.20

The market will continue to be very noisy, as we have a whole plethora of problems in the UK that will continue to weigh upon Sterling. The Brexit is still a major issue, and we have talks going on this coming week that will of course cause a bit of volatility as well. Ultimately, I do think that we pull back, and start going lower but it is probably going to take some type of headline to make that happen. The question is not so much in my mind whether or not we pullback, but if we do it here, or if we do it at the 1.25 level. With the leverage in Forex, timing is crucial, so if you do decide to short in this general vicinity I would do so with a small position. You can always add to a trade that is working out in your favor.

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

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

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk