GBP/USD Price Forecast – British Pound Jumps On Continue Talks

In a script that almost writes itself, every time it looks like Brexit is all but an assured disaster, the participants come back together and start speaking. On Sunday, both Boris Johnson and Ursula von der Leyen expressed a desire to continue speaking about a negotiated Brexit settlement, and therefore the British pound opened up rather strongly in early trading. The market has pierced the 1.34 level, which leads to the 1.35 level as far as a resistance area is concerned. Breaking above the 1.35 level would take a significant amount of momentum, and it is a bit difficult to think that it is going to happen without some type of an agreement. It is because of this that I anticipate the British pound is cool likely to be very susceptible pullbacks at this point, and although I would not be a seller, I certainly would not be a buyer until we clear the barrier.

GBP/USD Video 15.12.20

At this point in time, it should be obvious that the British pound is essentially untradable, as it is moving on the latest rumor or headline. The only thing someone following technical analysis can do is recognize that the 1.35 level is in fact crucial, and simply wait to see if we can get above there. Otherwise, it is probably best to leave this market alone because quite frankly even though the US dollar is very soft, there are easier currencies to trade against it. Trading through this kind of noise and drama is an excellent way to lose your account, despite the fact that a lot of retail traders see it as a massive opportunity. The problem of course is that you need to be on the right side of the trade, and then of course hope that nobody says anything to send the market scrambling.

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