The British Pound fell significantly during Thursday’s trading session as we continue to see a lot of noise around Brexit. That being said, the market reached the 1.3250 level, an area that has recently offered support on several occasions. In the end, I think it’s a market that’s trying to find buyers but that doesn’t mean it’s going to be easy. The 50 day EMA sits just below the 1.3250 level, but there are obviously a lot of concerns that could rock this market so with that in mind you need to be careful about your position size. If we fall below the 1.3250 level, it is possible that we will see the market move towards the 1.30 level thereafter.
Video GBP / USD 11.12.20
On the upside, the 1.35 grip is a significant obvious resistance barrier, and an important, round, and psychologically significant level that people will pay close attention to. Ultimately I think this is a market that once we hit the mark could see a lot of momentum come into this market, send the UK pound much higher, maybe hitting the 1 level. , 3750, then the level of 1.40 after that.
In the meantime, it is evident that there are many divisions between the UK and the EU, which of course means that some caution should be taken when trading sterling. From the most recent meeting, it appears that by Sunday we should reach an agreement on the continuation of the negotiations.
For an overview of all of today’s economic events, check out our economic calendar.
