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GBP/USD Price Forecast – British Pound Trying to Recover

By:
Christopher Lewis
Published: Oct 30, 2020, 13:39 UTC

The British pound rallied a bit on Friday to show signs of life again. The 1.30 level continues to be important though, and it has offered a bit of resistance.

GBP/USD

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The British pound has initially fallen a bit during the trading session on Thursday, but then bounced back to reach towards the 1.30 handle. After all, this is an area that will continue to attract a lot of attention, due to the fact that the level of course is a large, round, psychologically significant figure. Furthermore, we have the 50 day EMA sitting in the same area, and therefore it makes quite a bit of sense that we would see a certain amount of push and pull at the same time. At this point, I would not be surprised at all to see this market try to break back above the 1.30 level, but I think that there is a bit of a magnet to price in this general area.

GBP/USD Video 02.11.20

Looking at the chart overall, I do believe that there is a significant amount of support underneath between the 50 day EMA and the 200 day EMA, so at this point in time I have no interest in trying to get too cute with this, and I simply will look for daily candlesticks to drive my next trade. The Friday candlestick of course is a good start, at least for the buyers, but there is still a lot of noise just above that extends all the way to at least the 1.31 handle. With that being the case, I am very hesitant to get involved in this market right now due to the fact that we still have a lot of uncertainty when it comes to election fears in the United States, and of course the Brexit nonsense will continue to push this pair back and forth.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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