GBP/USD Price Forecast – British pound continues to go sideways

The British pound went back and forth during the trading session on Thursday, as we have seen quite a bit of noise in the market when it comes to the Brexit. With the Brexit being such a major sticking point, it doesn’t surprise me at all that the currency can’t seem to go anywhere. To the downside I see the 1.30 level as massive support, and I recognize that if we were to break down through that level significantly on a daily close, we would probably have to pull back to the next support level at the 1.28 handle. That being said, I suspect that we are looking at a scenario where we can potentially see a major break down in the short term. Longer-term though, the British pound is “cheap”, and I think most traders will be paying attention to that.

GBP/USD Video 12.04.19

To the upside I see a lot of resistance at the 1.3350 level, and therefore I would be very interested in a break out above that level as it would kick off a major move to the upside. At this point though, I think we are simply going to go back and forth in this general vicinity so there’s probably not a whole lot to do. With that being the case, you could play short-term trades off of the 1.30 level, but I wouldn’t expect much. Overall, this is a market that should probably be observed more than anything else.

Please let us know what you think in the comments below