GBP/USD Forecast – British Pound Continues to Test Same Resistance

The British pound has rallied again during the trading session on Monday to kick off the week on the positive side yet again. However, we continue to struggle with the 1.30 level, and I think it is going to be a major barrier to overcome. If we can get a daily close above the 1.3050 level, I think at that point the market is likely to continue going much higher. However, that does not mean that is going to be easy to accomplish, nor does it mean it has to happen in the next 24 hours.

GBP/USD Video 06.10.20

Looking at this chart, I think we continue to see traders come in and buy the dips based upon some type of guesswork when it comes to what the UK is going to do or whether or not there will be some type of Brexit deal. This is very dangerous trading, simply because we have seen time and time again just how willing the EU and the UK are to shoot themselves in the foot when it comes to negotiations. In fact, there have been times of the last several years that many of the professional traders I know have stepped away from trading the British pound altogether.

It does look a little bit like a bottoming pattern, but one can also make the argument that it is only a matter of time before somebody somewhere says something stupid, causing this market to implode. It is because of this that I would be very small with my position size chill I got some type of confirmation on the breakout. As far as selling is concerned, the last couple of days have shown how difficult that might be.

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