GBP/USD Price Forecast – British pound choppy during Thursday session

The British pound has gone back and forth during the trading session on Thursday, showing signs of confusion, as the market is dancing around the 50 day EMA and of course that cluster. At this point, the 1.23 GBP level should be minor support, but quite frankly if we can break down below there it’s likely that the market continues to drop down towards the 1.20 GBP level, albeit in more of a grind than anything else.

GBP/USD Video 27.09.19

At this point, if we rally above the top of the trading session for Thursday, then it’s likely that we could go looking towards the 1.25 GBP level, which also coincides nicely with the 38.2% Fibonacci retracement level. Beyond that, the 1.25 GBP level has previously been supportive, and now should act as resistance if it gets approached. The 200 day EMA is above there as well, and of course beyond that we have a whole plethora of reasons to feel that the British pound should continue to go lower for the longer-term.

With the circuits that is the Brexit, you will eventually get headlines in one direction or another that push this market around. All things been equal though, we have been in a downtrend for quite some time, and quite frankly I think there’s a good reason for that. All things being equal I think the only thing you can count on here is going to be a headline driven volatility, and there doesn’t seem to be any end in sight right now.

Please let us know what you think in the comments below