GBP/USD Price Forecast – British pound continues to chop back and forth

The British pound had a back-and-forth type of trading session early on Monday, as we continue to hang around the 1.2150 level. This is an area that should be important based upon the reactions of the last couple of days. However, the question now is whether or not we are forming a basing pattern, or are we trying to simply consolidate?

GBP/USD Video 06.08.19

The British pound will continue to suffer at the hands of an uncertain Brexit. It is because of this that I believe that rallies should be sold. Even if we do break higher from here, and that is of course very possible, the 1.2350 level is the beginning of significant resistance. That resistance should be very difficult to get past. I believe that the range between 1.2350 and 1.25 will continue to be a bit of a “ceiling” in the market.

We are most certainly in a downtrend, and therefore it shouldn’t be fought. Beyond that, the US dollar is most decidedly going to be in favor against the British pound and for that matter the Euro as the Brexit continues to cause a lot of problems. Rallies at this point I think are selling opportunities at the first sign of trouble, as we have until the end of October before we more than likely will have any clarity when it comes to the Brexit. Beyond that, the treasury markets in America continue to attract a lot of attention as P forward about geopolitical concerns.

Please let us know what you think in the comments below