GBP/USD Price Forecast – British pound quiet on Monday

The Euro went back and forth early on Monday, essentially deciding nothing. However, that is something worth paying attention to as we are hovering around the vital 1.25 level. This large, round, psychologically significant figure could be crucial in determining where we go next. That being the case, I am paying attention to the 1.25 level as a break down below that level could signal the next flush lower. That would be extraordinarily negative for the British pound.

GBP/USD Video 09.07.19

If we don’t get some type of negative news, then it’s possible that this market could bounce a bit as this is an area that has been important more than once. We could reach all the way to the 1.2750 level, which would simply be a continuation of what we’ve seen lately. Ultimately, this is a market that I think continues to be a bit difficult, because even though we have the Federal Reserve on one side of the equation getting ready to cut rates, we also have the Brexit which of course seems to be going nowhere quick.

It’s quite possible that we simply see the market hang about in this consolidation area for some time, because not only do we have a lot of questions involving the Brexit, it is also a scenario where it’s the summertime, and quite frankly that’s more often than not a bit quiet. With that being the case, consolidation is a very real threat as it were, so pay attention to this area. If we were to close below the 1.25 level significantly on a daily chart, then we drop 250 pips. Otherwise, if we can break above the highs of the Monday session, we could grind 250 pips to the upside.

Please let us know what you think in the comments below