GBP/USD Price Forecast – British pound continues to dance around major figure

The British pound has initially fallen a bit during the trading session on Wednesday, but then rallied to break above the 1.25 level before finding resistance again. When you look at the couple of candles, it appears that we are essentially in a consolidation phase, as the 1.25 level will be very crucial. This is an area where we could get a bit of a bounce, but if we were to break down below here, that would be an extraordinarily negative sign. Looking at the chart, it’s easy to see that there is a lot of confusion, so I would use the range of the past 48 hours to suggest which direction we are to go.

GBP/USD Video 11.07.19

On a break down below the bottom of that range, the market could then go down to the 1.2250 level. Alternately, if we were to break above the top of the two day range, then we could go to the 1.27 handle above which would probably coincide with the 50 day EMA. I believe that we are hanging on by a thread here, but the Federal Reserve looking to cut interest rates will perhaps add a lot of support to this pair, and give us an idea of a potential bounce, but we always have the specter of the Brexit in the background. Because of this, even if the US dollar falls in value against most currencies, it may underperform over here. However, a break to the upside over the last 48 hours would possibly show signs of strength that could be followed.

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