The GBP/USD pair forecast for November 06, 2020
Looking at the chart, we will notice that the GBP/USD pair declined for the second time from the Fibonacci level of 61.8% to 1.32000 and made a lower high. We can further monitor whether the GBP/USD pair will manage to skip that level and move towards 1.33000 or bounce and move down.
Several factors have been affecting this couple in recent days.
First are the American elections, the lockdown of Great Britain due to coronavirus, Brexit, etc. The American sources are not ready yet. The counting of ballots has not yet been completed in the five decisive states. Biden has a current advantage over incumbent President Trump. It will be possible for us to get the final results even today. Trump has filed a complaint in a couple of American States about the elections’ regularity, which could postpone everything until next week.
Other important news for the US dollar is Non-farm Payrolls and The Unemployment Rate. The report on non-farm payrolls is expected to show that the economy has added 600,000 positions, while the unemployment rate is projected to fall from 7.9% to 7.7%.
The Bank of England kept the official interest rate of 0.1 percent and added 150 billion pounds to its goal of buying bonds to support the economy through a second lock. The Bank of England announced that the British economy would be 11 percent smaller at the end of 2020 than at the end of 2019, taking into account the renewed blockade.
Representatives of Great Britain and the EU said that the differences remain in Brexit’s trade negotiations after two weeks of intensive negotiations. The UK formally left the EU earlier this year but respected EU trade rules by the end of December.
The number of cases in the UK with Coronavirus is at a record high of over 25,000 daily. The country is in quarantine for the next month.
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