British Pound Challenges the Same Big Figure on Friday

The British Pound continues to be very noisy, as there have been a massive amount of announcements coming out of both the UK, and the USA.

GBPUSD

The British Pound has been noisy during the trading session on Friday, as we continue to see a lot of pressure on the British Pound with a slew of news coming out during the trading session. It is not a huge surprise to see that it has been quite noisy.

PMI numbers out of the United Kingdom were hotter than anticipated so that is good for the British Pound but at the same time we have also had a lot of noise coming out of the United States which included the core PCE numbers being hotter than anticipated, the advanced GDP numbers being weaker than anticipated, although it should be stated that the partial government slowdown really has had an influence there.

Technical Indicators and Market Outlook

And of course, we have had the Supreme Court ruling that the Trump tariffs might have to be turned around and done in a different way. So the question now is whether or not those tariffs disappear or if they just take a different form. With the United Kingdom, that does not affect things too much, but it does affect the US dollar in general.

It is worth noting that the 50-day EMA is sitting just above and if we can clear the 50-day EMA that would be a very bullish sign probably sending this market towards the 1.3625 level. On the other hand, though, if we were to break down below the last couple of days then it opens up the possibility of a move down to the 200-day EMA which is closer to the 1.3350 level.

Ultimately, I expect a lot of choppiness, but I also recognize that the British Pound is probably one of the weakest currencies against the US dollar as far as the big ones are concerned at the moment.