Yahoo News GBP/USD Price Forecast – Breaks Through Major Round Figure Again
The British pound has rallied early during the trading session on Wednesday, reaching towards the crucial 1.31 handle. The question now is whether or not it can sustain the move? If it can, and perhaps break above the 1.31 level on a daily close, the market is likely to go looking towards the 1.33 handle next. However, we still have the same jitters that we have had forever when it comes to Brexit and all things involved in that mass, so it is not too difficult to imagine a scenario where somebody says something that has the market selling off again. Occam’s razor dictates that all things being equal we should see the most logical outcome, and right now it looks like we will eventually try to break out to the upside but in the short term consolidation is what I have to assume.
GBP/USD Video 22.10.20
To the downside, the 1.2850 level has offered significant support as of late, so unless there some type of event in the financial world I anticipate that we should stay above there. If we do break down below there, then the next target will almost certainly be the 200 day EMA which is closer to the 1.2750 level underneath.
That would be a major breakdown if we were to slice through it, so certainly something worth paying attention to if it happens. At this point, it certainly looks as if the resiliency of the British pound should be something to be noted.
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This article was originally posted on FX Empire
