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GBP/USD Price Forecast – British Pound Stabilized in at 200 EMA

Christopher Lewis
·2-min read

With the British seemingly ready to lockdown their own economy, it is difficult to get overly bullish of the British pound. That being said, it is worth noting that we are sitting right at the 200 day EMA and it has caused at least a bit of technical stability. With that in mind, I think that this candlestick is going to be very interesting to pay attention to, and it could set up for a little bit of a “binary trade”, which is when you take the direction of the break be it above or below the candlestick. However, I would point out that above we have the 1.30 level in that more than likely will offer significant resistance and would need some type of exterior help to get above.

GBP/USD Video 23.09.20

That help might come in the form of the US dollar weakening, not necessarily anything great coming out of the United Kingdom. However, we still have to worry about Brexit and all of the noise that comes with that, so keep in mind that the occasional headline is going to come out that might throw this market into massive volatile swings. Because of this, it is very difficult to trade this market with any type of longer-term conviction. Simply put, if we break above the top of the candlestick from the trading session on Tuesday, the market probably targets 1.30 above. If we break down below the bottom of the candlestick, then it is likely that we go down to the 1.25 handle.

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

This article was originally posted on FX Empire

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