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GBP/USD Price Forecast – British pound bounces

By:
Christopher Lewis
Updated: Jun 6, 2019, 15:52 UTC

The British pound initially fell during trading on Thursday but turned around to show signs of strength as we rocketed straight up in the air. The question now is whether or not we can break above the resistance barrier?

GBP/USD daily chart, June 07, 2019

The British pound initially fell during the trading session on Thursday but found enough support underneath the turn around and test the top of the shooting star from the Wednesday candle stick. Ultimately, this is a market that will continue to be very volatile as we have the Brexit going on and of course nobody really knows how that will turn out.

GBP/USD Video 07.06.19

Looking at the chart, if we can break above the 1.2750 level on a daily close, we probably will go looking towards 1.28 level next, which will be even more resistive. At this point, it’s very likely that the rally will continue to face a lot of trouble, so therefore I’m actually looking for signs of exhaustion to start selling. That doesn’t mean that I will be aggressive about it, but on an hourly candle stick that has a long upward wick, I’d be willing to sell because quite frankly nothing has changed in the Brexit situation that helps.

Keep in mind that the jobs number coming out on Friday could also cause a lot of noise as well, so quite frankly it’s almost impossible to imagine a scenario where it’s going to be easy to trade this market. With that being the case, you should always pay attention to the longer-term trend, which certainly has been negative for some time. To the downside, the 1.25 level should be massive support, so I don’t think that we will break down below there. In fact, I believe we are in the process of trying to stabilize the market, but that will be a longer-term process.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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