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

The British pound rallied during the trading session on Friday, as the 1.31 level is trying to offer a little bit of support, but at this point I would still be a little bit cautious about the idea of jumping in. After all, the British pound is going to be very volatile one you look at the Brexit situation not getting any more clarity. Furthermore, if we get some type of major “risk off move”, it could drive money into the US dollar. Finally, we have the worry about closing down the United Kingdom from an economic standpoint, so that does not help the situation either.

GBP/USD Video 16.11.20

All of that being said, I believe that the 50 day EMA sitting around the 1.30 level is a good sign of support, and of course we have seen a slight rise that would coincide with that general area anyway. That being the case, I like the idea of finding value on dips, but I would be very cautious about putting a lot of money to work. After all, this is a currency that is going to be highly supported by the idea of getting some positive reaction to the Brexit news, and given enough time they will probably try to figure something out, or at the very least get it over with and have a “no deal Brexit.” Either way as soon as we get clarity it is likely that the British pound will continue to rally due to the fact that we are at historically low levels. In the short term, I look it dips as potential buying opportunities but am very cautious.

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.