Christopher Lewis
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The British pound broke down significantly during the trading session on Thursday, as the 1.25 level continues to cause major issues. Ultimately, this is a market that has been very bullish, but it does seem as if this is an area that continues to cause major issues. The 50 day EMA of course is something that people are paying attention to, and it is worth noting that we are running out of momentum when it comes to the British pound in this general vicinity. I do believe that if we close below the 1.25 level again, it is likely that we will see sellers coming back in. After all, this is a market that features the United Kingdom, which of course is an economy that is completely locked down. One would have to think that sooner or later there could be ramifications to that.

GBP/USD Video 01.05.20

To the downside, the 1.23 level is support, and I do believe that we could try to reach down towards. The market has been rising overall, but if we were to fail here it could be a “lower high”, which would be the first signs of serious trouble. As far as buying this pair is concerned, I am a bit hesitant to do so due to how momentum has simply dropped off of a cliff. If we do break to a fresh new high though, then obviously we have to pay attention and start buying. Obviously, that would be the hard trade to take now but it is what it is, and following price is the only thing you can do.

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