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GBP/USD Price Forecast – British pound plunges

The British pound continues to be very volatile as we plunged lower. The 1.2250 level is an area of contention, and now it looks as if we will continue to see a lot of noise in this region.
Christopher Lewis
GBP/USD daily chart, August 29, 2019

The British pound broke down significantly during the trading session as we continue to see a lot of volatility in Sterling. Because of this, it’s very likely that we will see more negative pressure given enough time, as the Brexit continues to weigh upon the currency. Beyond that, the US dollar has been attracting a lot of attention as the bond market has been on fire as of late. With that, the US dollar is the favorite currency, and adding the Brexit to the mix only makes it that much more obvious.

GBP/USD Video 29.08.19

To the upside, the 50 day EMA is sitting just above and offering resistance, so I think it’s only a matter of time before we see some type of selling pressure in that particular region. Beyond there, the 1.25 level above will also offer quite a bit of noise and resistance, so be cautious at this point. I suspect that rallies continue to offer opportunities, and they should be looked at as such. I don’t have any interest in trying to fight the trend, so any time we rally I simply wait for those signs of exhaustion to take advantage of. This continues to be a market plays that continues to see traders gone for the 1.20 level underneath, which is a large, round, psychologically significant figure. That attracts a lot of attention but I do think that we break down through there and flush down towards the 1.15 level underneath. Expect a volatile and choppy road lower so focus on shorter-term charts.

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