GBP/USD Price Forecast – British pound chops on Wednesday

The British pound has gone back and forth during the trading session on Wednesday, but as you can see we continue to see a lot of noise in this market. Ultimately, I think that we still have a lot of downward risk, although the Tuesday candle was of course very impressive. The 200 day EMA is just above at the top of the descending triangle which we have now reentered, so I think it’s likely that we will see sellers sooner rather than later. That doesn’t mean that I’m ready to jump in with both feet, quite frankly I think the British pound is going to be very difficult going forward as we continue to see a lot of manipulation by anonymous Twitter accounts.

GBP/USD Video 17.01.19

With that being the case, expect sharp spikes, and in fact we have already seen a 50 pips run in the GBP/JPY pair based upon “unnamed sources” suggesting that the EU was willing to negotiate and perhaps give a little bit more to the British. Because of this, you should be very cautious about putting too much money to work in this pair, but I would not be surprised at all to see this market drift back towards the 1.27 area. However, if we do break above the 200 day EMA, that’s an extraordinarily bullish sign, and that sends this pair looking to much higher levels, which I would assume would be as a result of some type of good news involving the Brexit.