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Christopher Lewis
GBP/USD weekly chart, November 04, 2019

The British pound has rallied a bit during the week but continues to struggle with the 1.30 level as resistance. That large, round, psychologically significant figure will continue to attract a lot of attention, and therefore it should be paid attention to. So far, the market has not been able to break above there, and there does seem to be a lot of noise all the way up to the 1.33 level as well.

GBP/USD Video 04.11.19

To the downside, the market should have plenty of support right around the 1.27 level, as we have seen on the daily chart and of course the 50 week EMA is starting to dance around that level as well. The 1.25 level underneath would be bullish and supportive as well, due to the psychology involved in that figure. At this point in time, the British pound should continue to go higher over the longer term, as Brexit headlines continue to look more favorable. That being said, if we get some bad news out of that scenario, we could see the British pound get hammered.

That being said though it looks as if the market is starting to price in the idea of Brexit having some type of deal, and that should be positive for this market. The Federal Reserve is on hold, and the Bank of England looks likely to do the same as a Brexit deal could take some of the pressure off of the central bank to start cutting rates.

Please let us know what you think in the comments below

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