GBP/USD Price Forecast – British Pound Trying to Recover

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.

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