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GBP/USD Weekly Price Forecast – Continues to Wrestle With Same Level

By:
Christopher Lewis
Published: Oct 9, 2020, 15:30 UTC

British pound initially fell during the week but then turned around to show signs of strength again. However, the 1.30 level continues to be a major problem.

GBP/USD Weekly Price Forecast – Continues to Wrestle With Same Level

The British pound initially fell during the course of the week but found enough support underneath to continue grinding towards 1.30 level. At this point, this has nothing to do with Brexit, because quite frankly there is no good news on that front. In fact, it looks more and more likely that we are going to get a “no deal Brexit”, even though a few people have made certain platitudes through the press. At the end of the day though, that is more of the same that we have been dealing with for several years. What seems to be driving this pair more than anything else is the idea of stimulus coming out the United States. Hope burns eternal, and therefore people have been selling the US dollar in mass.

GBP/USD Video 12.10.20

At this point, if we can get a daily close above the 1.3050 level, I would consider buying the British pound. However, you also have to keep in mind that all it would take is one stupid comment coming out on twitter or perhaps a headline through the news, in the British pound will be sold off. Quite frankly, most people I know are not trading the British pound, as it is so panic, and news driven. With that being the case, I think it is only a matter of time before we have to make a decision, but at this point the range between 1.2750 and 1.30 seems to be what most people are focusing on. With that in mind, it is difficult to buy this pair or even sell it for a longer-term trade currently.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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