GBP/USD Price Forecast – British pound continues to grind

The British pound initially fell during trading on Monday but then turned around to show signs of life again. We are essentially hovering around the same area we had been on Friday, so although the candlestick might be a little bit more bullish in the sense that it recovered, we really haven’t gone anywhere. That makes quite a bit of sense because after the G 20, not much has changed and that of course will catch a lot of people’s attention. Beyond that, we also have the Brexit which hasn’t sorted itself out so that continues to weigh upon the British pound while on the other side of the Atlantic, we have the Federal Reserve looking to cut interest rates. In other words, I think this is going to continue to be a major grind.

GBP/USD Video 02.07.19

Looking at this chart, I see a significant amount of resistance built into the 1.28 handle, so it’s not until we break above there that I would be overly interested in trying to go along with any reasonable size. To the downside, I think that we are trying to form a bit of a bottom but would probably quite away from being able to do that. Ultimately, I think we continue to see a lot of choppiness so position size will be crucial. Quite frankly, I think that the British pound is going to continue to be very difficult to deal with throughout most of the summer. As we aren’t sure who the next PM is going to be, we don’t know how the Brexit’s going to turn out, and of course the Federal Reserve is still a bit of a question.

Please let us know what you think in the comments below