GBP/USD Price Forecast – British Pound Very Resilient

The British pound initially pulled back a bit during the trading session on Monday, reaching down towards the 1.29 level. Ultimately, the market has shown itself to be somewhat resilient, as we have bounced rather hard, flying in the face of conventional wisdom when the British are locking down their own economy. Ultimately, I think that the market is going to continue to see a lot of noisy trading in this general vicinity, but we also have the 200 day EMA underneath showing signs of support as well. Just above, the 1.30 level is a large, round, psychologically significant figure, and we also have the 50 day EMA just above. In other words, what has been a very choppy and difficult pair is only going to continue to be so.

GBP/USD Video 03.11.20

Looking at this chart, I believe that we are going to continue to see a lot of noisy trading, but it does still, at least in theory, look like it is trying to tilt higher. We have the jobs number coming out at the end of the week, and of course the US presidential election which is going to make an absolute mess of the markets. So far, the candlestick does suggest that perhaps we are going to be back and forth, and that would be my default position. In other words, I do not even think I would be trading this pair. I quite frankly think you could probably say that for a lot of the different markets around the world right now, as this entire week is a minefield of potential risk.

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