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GBP/USD Price Forecast – British Pound Continues to Test Major Area

The British pound has had a volatile session during Tuesday as we continue to test the 1.25 region. It has shown some resiliency but does look a bit overextended.
Christopher Lewis

The British pound broke down significantly during the trading session on Tuesday but has bounced a bit as the Americans have stepped on board. This shows just how resilient the British pound is and as a result I think that we have quite a bit of a fight on our hands. The 1.25 level offering significant resistance should be paid attention to, but if we can break above there then it opens up the door to even bigger gains. Quite frankly, I believe that the market at the very least needs to kill time in this area so paying attention to the region is going to be crucial.

GBP/USD Video 01.04.20

This sets up a potential move to the 1.2750 level, or on the downside down to the 1.20 level. It is because of this that we should be paying quite a bit of attention. Looking at this chart, it’s obvious that we are about to make a serious move, but one has to wonder how much more risk appetite there is out there? After all, there is a significant amount of damage to the global economic situation and that doesn’t necessarily bode well for this pair. Beyond that, the EU and the UK still have a lot of negotiating to do going forward so there is still a huge amount of volatility just waiting to happen. One thing is for sure, we are about to get a significant move and as a result I believe that we are setting up quite nicely for the next couple of handles. The one major thing that you should be concerned about is position size, so keep it small.

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