GBP/USD Price Forecast – British pound struggles at the 1.25 level again

The British pound has fallen a bit from the 1.25 level again waiting for the Federal Reserve. And as a result it’s likely that the market is going to continue to recognize this area as being crucial ahead of the Federal Reserve announcement.
Christopher Lewis
GBP/USD daily chart, September 19, 2019

The British pound has juggled around the 1.25 level, as we are sitting at what one would have to think is a crucial level. There has been a lot of trading in this area, and the market is a bit parabolic. So the question now is whether or not the market is going to grind sideways and kill off a bit of time, or rollover based upon the resistance in the 38.2% Fibonacci retracement level. We are halfway between the 50 day and the 200 day EMA indicators, so that might be something worth paying attention to as well.

GBP/USD Video 19.09.19

There is a lot of resistance extending to the 1.2750 level as there is a lot of noise between here and there, so all things being equal it’s very likely that the market will eventually find quite a bit of resistance between here and there. Beyond that, there’s also the possibility of some negative headlines coming out of the entire Brexit situation that could turn the thing right back over. The 200 day EMA is close to the 50% Fibonacci retracement level, and therefore it’s very likely that it will cause a certain amount of noise as well. Longer-term, it’s very likely that we still have “one more flush lower” in the British pound, as we have not had a solution to the British leaving the European Union. However, if we do close above the 200 day EMA for a couple of days, then the trend has probably changed. It’s very difficult to imagine that the market has bottomed the way it has and everything is awesome again when it comes to the UK.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.