GBP/USD Price Forecast – British pound continues to consolidate

The British pound went back and forth during the trading session on Monday, as we continue to dance around in the same consolidation area that we have been in for a couple of weeks. At this point, it’s very likely that the market will be difficult to deal with until we get some type of resolution to the Brexit.
Christopher Lewis
GBP/USD daily chart, October 08, 2019
Close Up/Macro Study of Various British Sterling Paper and Polymer Bank Notes

The biggest problem with trading the British pound right now is obviously Brexit, as it continues to cause major issues. After all, it seems to be a bit of a conundrum that traders will have to deal with, as one headline after another throws both optimism and pessimism back and forth as if in some type of tennis match. Ultimately, there will be some type of closure, but we are nowhere near it at this point.

GBP/USD Video 08.10.19

Currently, it looks as if the 1.22 level underneath is support, just as the 1.22 level above is resistance. Ultimately, this is a market that will make a decision, but if the headlines continue to confuse, it’s going to be very difficult to hang on to a position for anything more than a quick scout. Ultimately, we will need to see some type of resolution to the entire scenario, and that could unleash the next trend. To the downside, that could mean that the market looks at the 1.20 level which of course is a large, round, psychologically significant figure. To the upside, the 1.25 level will be a barrier that’s difficult to overcome, but if we did see the market break above there it would be a very positive sign to say the least. All things being equal, choppiness will continue to be the order of the day so therefore it’s not necessarily a market that you should be trading much size in.

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