GBP/USD Price Forecast – British pound continues to chop

The British pound has gone back and forth to kick off the Monday session, as we are essentially trying to figure out what’s next for the pair. The market has rallied quite nicely as of late, due to the Federal Reserve seemingly stepping away from its hawkish attitude, but I think that the Brexit situation is going to add more volatility, and of course more trouble going forward. The 200 day EMA is above, and I think that would cause major resistance. Not only is the 200 day EMA just above, but it’s also the descending trend line being part of the descending triangle.

GBP/USD Video 15.01.19

I do believe that the 1.27 level underneath is going to be supportive, but I think that it will only be slightly so, as it has already been pierced the couple of times. I think there’s even more support at the 1.25 handle, and we are essentially moving based upon the latest headlines when it comes to Brexit. Twitter continues to cause plastic moves in the currency markets based upon the latest headlines, but overall we are still within a downtrend, looking at the chart certainly confirms this, although the 50 day EMA, pictured in red on the chart, is starting to turn slightly higher. Expect a lot of noise, but I think at this point it’s only a matter of time before we get larger moves. This will coincide with the middle of the week, once we get voting underway and more drama.