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Christopher Lewis
GBP/USD daily chart, May 10, 2019

The British pound has gone back and forth during the trading session on Thursday, as we continue to deal with the 1.30 level as a magnet for price. Looking at this chart, it’s obvious that we have seen the lot of back-and-forth action, so the fact that we are treading water in a very large number doesn’t make much of a surprise to me. Looking at the chart, I could make an argument for a move down towards the 1.29 level, which was support as of late. A break down below there could open the door to much lower pricing, perhaps even down to the 1.27 handle.

GBP/USD Video 10.05.19

The other side of the equation is that we break above the 1.3050 level, and then go looking towards the 1.32 level as a target. A break above there could send this market to the 1.33 level. Obviously, this is a market that will continue to struggle with a lot of volatility, mainly because the Brexit is in such disarray, so a lack of certainty creates chaos.

Longer-term, I do believe that we are getting close to the bottom with the British pound, because once we get some type of certainty, it will be then when the longer-term “buy-and-hold” traders get involved and simply pick up cheap British pounds. We are historically cheap at this point, and that something that we should continue to keep in mind.

Please let us know what you think in the comments below

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