GBP/USD: Looking for 1.20000 once more
Welcome back to EverythingFX!
The Great British Pound is currently trading at 1.20760 against the US Dollar during today's London session.
Seeing as the monthly candlestick just closed it is important that we take a look at what it closed as so we can gauge where we are heading next! Seeing as throughout the month of August we have closed fairly indecisively as a Doji candlestick printing price in both directions.
Dropping down to a weekly to get a clearer picture into the month of August we can see the price has been trapped in a 250 pip range while printing a gap upon open of this week's session with that quickly being fulfilled and since allowing for a rapid 100 pip decline to 1.20650. Now it is important to remember we are in and around an important level of support at 1.20000 psychological level which essentially will be a make or break for the pair going forward. From a technical side of things, I am staying clear from this pair till we have momentum in either direction.
Fundamentally we had manufacturing PMI's for August come out at 47.4 driving the UK Economy further into contraction, Yes this may be a bad number, however, what remains on top of Traders lists right now is Brexit, with all eyes on a Cabinet meeting scheduled for 5 pm GMT which will have traders glued to there screens for comments from members of the Prime Minister himself. It is important to remember that we are slowly approaching the leave date which is on the 31st of Oct so we should start preparing ourselves for a volatile next two months for the Pound. Stay tuned to our market news section and social media feeds for further updates! Leave a comment below whether you think we will leave the EU with or without and deal!!