09.10.202011:48 Forex Analysis & Reviews: Analysis and forecast for GBP/USD on October 9, 2020

Daily

Following the results of yesterday's trading, the GBP/USD currency pair grew and ended the session on October 8 at 1.2933. It is worth noting that the strengthening of the British pound against the US dollar, taking into account the current growth, continues for the third day in a row. At the same time, the pound bulls are still unable to raise the quote above the iconic psychological and technical level of 1.3000. I dare to assume that until the pair is fixed above this important mark, further strengthening of the "British" is not possible. Difficulties with the rise to 1.3000 are indicated by a rather long upper shadow of yesterday's candle, as well as a false breakdown of the level of 1.2977, where the maximum trading values were marked on October 1. Finding the Kijun line of the Ichimoku indicator right below the mark of 1.3000 certainly increases the resistance of sellers near this important level. Do not forget about the strong technical level of 1.3047, which has repeatedly stopped the price and turned it in the opposite direction.

In addition to COVID-19 and Brexit, which is now in its fifth year, macroeconomic statistics from the UK have an impact on the price dynamics of the pound. However, the reaction of market participants to today's data on the UK GDP for August, which came out worse than the forecast values, is still rather sluggish. Still, the main influence on the British currency exchange rate is whether the UK will leave the European Union with or without a deal. At the same time, I believe that a hard Brexit is already more taken into account in the price of sterling. Nevertheless, new reports on this issue have a significant impact on the price fluctuations of the volatile and speculative British currency. To sum up the meager fundamental part of the review, there are no more major events planned for today from the UK and the United States of America. Therefore, I suggest you focus on the price charts.

Thus, going back to the daily timeframe, it is reasonable to assume that the bullish scenario will get a good chance of its implementation only after a true breakdown of the 50 simple moving average, which passes at 1.3023. Bears will take control of the GBP/USD market only after the price is taken down from the Ichimoku indicator cloud and the black 89 exponential moving average is broken, which is held at a strong technical level of 1.2860. These are the immediate prospects for the pound/dollar currency pair. Naturally, significant adjustments to the course of trading on GBP/USD can be made by the speeches of the heads of the Bank of England and the Federal Reserve, information about the spread of the second wave of COVID-19, as well as important macroeconomic statistics that will come from the UK and the United States.

H4

Despite the fact that the weekly chart for this currency pair is analyzed on Mondays, I looked at weekly, where at the end of the article, the current weekly candle already has a small lower shadow and a bullish body begins to appear. Based on this, I can assume that the pair has already reached the bottom this week and now intends to show growth. If so, the main trading recommendation for today is to buy.

Since at the end of the review, the pair on H4 has already overcome the 200 exponential moving average, which is located at 1.2933. After a rollback to this level, you can try buying the "British" with the nearest goal in the area of 1.2977-1.3005 and a stop at 1.2885. I hope to provide more detailed information and trading recommendations on Monday, taking into account the actual completion of the current weekly trading.