GBP/USD Price Forecast – British pound continues to grind

The British pound over rallied a bit during the trading session on Wednesday but continues to see a lot of resistance above. With that in mind it is difficult to imagine a scenario where it’s going to be easy to rally significantly, but eventually we should.
Christopher Lewis
GBP/USD daily chart, April 11, 2019

The British pound rallied a bit during the trading session on Wednesday as we continue to see a lot of noise when it comes to Sterling. That’s not a surprise, as we have so much drama when it comes to the Brexit. With that being the case it’s very likely that we will continue to see a lot of back-and-forth. The 1.30 level continues offer massive support, just as the 1.3350 level continues offer massive resistance in general. Ultimately, this is a market that is going to move on headlines so therefore it’s very difficult to trade.

GBP/USD Video 11.04.19

A lot of the traders that I know personally have simply given up on trading the pound between now and whenever we get some type of solution with Brexit. It’s almost impossible to imagine a scenario where this market can break out to the upside without some type of deal, and at this point it’s very likely that we will see a lot of choppiness. However, the one thing that has been reliable lately has been the area around the 1.30 level, so that’s simply how you have to look at the market, buying short-term dips. If we do break down below the 1.2950 level, then the market is likely to go down to the 1.28 level underneath as the market will be looking for some type of “reset.” It is at that area that we should see the extraordinarily strong demand for the British pound as it becomes extraordinarily cheap.

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