Analysis

Premium analysis by our dedicated team
GBPUSD
Nov 2, 2020, 12:14 PM GMT
#Forex

GBPUSD Waiting for Its Right Shoulder

The past several days have been quite tumultuous for the GBPUSD, in light of the reinstated lockdowns in England, and the entry of the final stage of the Presidential race in the US. Even so, the next five days are poised to be even more volatile for the cable. What follows next in the economic calendar is arguably the most eventful week for the entire 2020 with BOE and FED's interest rate decisions; Non-Farm Payrolls in the US; and of course, to top it all off – tomorrow's election date that the market has been bracing for over the last several months.

With so many top-tier events cramped over the span of just several days, adverse volatility and general market uncertainty are bound to reach critical levels. For more risk-averse traders, such a tight calendar ahead would spell massive risk, which could discourage them from joining the market at the height of all of this uncertainty. Even still, that is not to say that the GBPUSD is behaving quite erratically.

As regards the pound, the renewed lockdown measures in large swaths of the United Kingdom would stave off the overall economic activity, and just before the critical December 31st Brexit deadline. All of this is likely to exacerbate the woes for the sterling.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
170 PIPS 50 PIPS 0 41 PIPS
0.59%
Short Term
+ -
170 PIPS 50 PIPS
Long Term
+ -
0 41 PIPS
Net % Gains
0.59%

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