GBP/USD Price Forecast – British Pound Continues Choppy Behavior

The British pound rallied initially during the trading session on Thursday, but as you can see the 1.30 level continues offer major issues. It is at this point that the sellers step back in and I believe that might end up being the way going forward as we have so much noise involving Brexit. With that being said, it is difficult to imagine that the British pound will be a currency that people wish to hold for any significant amount of time. After all, it does not take much to get the British pound selling off again, as it appears that the next week or so will be the deadline for some type of deal.

GBP/USD Video 09.10.20

Whether or not that actually is the case is a completely different story, but you have to work with the information that you have. At this point, the information certainly suggests that we cannot make a “higher high” and had recently made a “lower low.” This suggests that we will continue to see negativity going forward, and probably more or less a grind down towards the 1.2750 level again. This is also where the 200 day EMA sits, so it should continue to drive quite a bit of interest.

Breaking down below there opens up the possibility of a move down to the 1.25 handle which is obviously a large, round, psychologically significant figure. I do not have any interest in buying until we get a move above the 1.30 level, preferably on a daily candlestick close, while the US dollar is falling in strength overall.

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