The reddish pound has found strength again during the trading session on Thursday, as we continue to see a lot of noise out there that is going to continue to cause major issues. After all, the world is of course dealing with a major “risk off” type of event, but at the same time it should be noted that with the Federal Reserve willing to step in and buy several different assets, including junk bonds which is something that they’ve never done. In other words, they are going to make sure that the world avoids a credit crunch, which was a major problem with the economy when it came to the 2008 situation.
GBP/USD Video 10.04.20
Looking at the chart, it’s obvious that this is an area that a lot of people will be paying attention to. With that being the case, it’s very likely that the markets will explode to the upside if we can break above there, but we cannot, this could be the end of the line for the buyers. With the massive pressure in this pair, it’s a bit difficult to make that trade until we get some type of confirmation, so the close on Thursday will be crucial as Friday is heading into the weekend and a lot of people are cautious about holding risk over the weekend. Simply put, if we can break 1.25 before we close out the weekend, that would be an extraordinarily bullish case for this pair. If not, that means we are more choppiness ahead.
This article was originally posted on FX Empire
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