GBP/USD Price Forecast – British pound continues to hover near large figure

The British pound initially fell during the trading session on Thursday, but then turned around to show signs of strength. However, we have not shown enough strength to break above the crucial 1.25 handle. Beyond that, there is also the 38.2% Fibonacci retracement level, which of course will attract a lot of people. The 200 day EMA is above as well, and there is a ton of noise on the charts between here and there. With all of that being the case and of course the British political class still bickering about the Brexit situation, it’s difficult to imagine that this market is just going to shoot straight through the air.

GBP/USD Video 20.09.19

If we managed to break down below the last couple of days, the market probably drops down to the 1.23 level, and then eventually the 1.2250 level. Underneath that, the 1.20 level is the longer-term target. However, if we were to turn around and break above the 200 day EMA, we could go to the 1.30 level but it may take some time. All things being equal though, the market will continue to be very noisy in headline driven. While this has been a nice bounce over the last couple of weeks, the reality is that it is merely a “blip on the radar” when it comes to the overall downtrend. With that, simply waiting for an opportunity to pick up the US dollar “on the cheap” is how I am approaching this market. That means I have been sitting on my hands for the last several days.

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