GBP/USD Weekly Price Forecast – British Pound Reaches 200 Week EMA

The British pound has initially pulled back just a bit during the trading sessions that make up the week, only to turn around and sliced through the 1.30 level. By doing so, the market then reached towards the 200 day EMA, which is an area that shows resistance yet again. All things being equal, this is a market that I think continues to go back and forth due to the fact that nobody really knows what to do with the British pound ran out. That of course is due to the fact that we have Brexit out there hanging over the head of traders, so it is difficult to imagine that the British pound suddenly takes off until we get some type of clarity with that situation.

GBP/USD Video 09.11.20

The British pound got a bit of a boost due to the idea that perhaps the Americans would be adding massive amounts of stimulus going forward, but that does not seem to be as much of a “slam dunk” as it once was, with the Republicans hanging on to the Senate. With that being the case, I think we will continue to see a lot of back-and-forth trading, and ultimately this is a market that is still simply treading water between the 50 week EMA and the 200 week EMA. Obviously, if we get some type of news coming out of Brexit, that can change everything, so it is still difficult to trade this from the longer-term standpoint. One thing worth noting though is the fact that we did find a bit of support underneath as the low that we just made was higher than the one before it.

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