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Christopher Lewis
GBP/USD

The British pound has rallied yet again for the week, closing towards the top. That being said it is likely that we will see a lot of bullish behavior in general, but the 1.2750 level above could be a bit of a barrier. If we can break above, there then I think the 1.30 level is likely. A pullback from here, which of course could happen, has the market testing the 1.25 level again, and then possibly the 1.2250 level. With this, it is a bit difficult to get overly excited about the market right now as far as shorting is concerned, because quite frankly the British pound has continued to over perform.

GBP/USD Video 13.07.20

I do believe that we are going to continue to see a lot of noisy trading but ultimately it would not surprise me at all to see the British pound make the move to the upside due to the fact that the Federal Reserve is doing everything it can to weaken the US dollar. If we did break back down though, I suspect it would just be more of the grind and consolidation that we have seen in this little bit of an up trending channel.

At this point, anticipate seeing a lot of noise in general but it certainly looks as if the buyers are making a statement, and perhaps trying to change the overall trend. The British economy is opening up again, so that of course helps but I cannot help but asked the following question: “Whatever happened to Brexit? That suddenly does not seem to be an issue.”

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

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