GBP/USD Price Forecast – British Pound Continues to Grind Sideways

The British pound went back and forth during the trading session on Friday again, as we continue to dance around the 200 day EMA. This is catching a lot of attention, but it is also worth noting that we are near the 1.2750 level, an area that has been in my analysis multiple times over the last couple of years. This is an area of a lot of interest, so it does make a bit of sense that we are simply grinding back and forth in this general vicinity. That being said, the structure of the market has most decidedly fallen to the negative.

GBP/USD Video 28.09.20

When you look at the most recent price action, you can see that we made a much lower low, followed by a lower high, followed by a shorter lower low. In other words, we are starting to see this pair unwind again so therefore I think that shorting this market is probably the best way to go, especially considering that we still have to deal with Brexit and all of the potential headwinds that could cause in the marketplace. That being said, I would be very cautious about jumping “all in”, due to the fact that the next headline could be a “positive one” featuring Brexit, and you could get your face ripped off.

Scaling into positions is probably the safest way to deal with this type of market, assuming that you want to deal with it at all. (Several professional traders I know are even bothered with the British pound again.) With all that, I think the one thing you can count on is a lot of choppy behavior.

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