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GBP/USD Weekly Price Forecast – Gets Hit With No Brexit Deal Option

By:
Christopher Lewis
Updated: Dec 11, 2020, 16:22 UTC

The British pound has gotten hit rather hard during the week, after trying to be somewhat optimistic. Meeting between Boris and Ursula has produced nothing.

GBP/USD Weekly Price Forecast – Gets Hit With No Brexit Deal Option

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The British pound has gotten hit during the course of the week, reaching towards the 200 week EMA before bouncing slightly. This of course is in reaction to the nonsense that continues with the Brexit situation as EU and UK leaders have met this week, only to suggest that there is almost no headway made on some type of Brexit deal. In fact, Boris Johnson and Ursula von der Leyen have both been quoted on Friday as suggesting that a “no deal Brexit” is the most likely outcome.

GBP/USD Video 14.12.20

Having said all of that, they did suggest that a decision on when to talk next would be made by Sunday, so it is very likely that by the time we wake up on Monday we should see some type of potentially positive news. However, the reality is that the markets are still going to be very skittish, and we need to zoom out in order to see potential support and resistance. The 1.30 for me is very supportive from what I see, just as the 1.35 level is massive resistance. With all of the noise out there, it should be noted that the market continues to bang up against that 1.35 handle, and if we can break above that then it is likely that we go much higher.

However, we need some type of good news to make that happen, and we are short on that right now. More likely than not the only thing holding this pair up right now is the fact that the US dollar has been hammered.

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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