GBP/USD Price Forecast – British pound very noisy through comments

The British pound was very noisy during trading on Tuesday, as we broke above the trend line, a very positive sign but it only took a few comments from an EU official to bring everything crashing to a halt. The gamesmanship continues, as an EU official was stated as telling the British to be careful about “crossing a redline”, right before an Irish official suggested that the deal with this only a couple of weeks away. In other words, we have more games being played through the media, and of course the currency markets are reacting as you would expect, with mixed confusion.

There are algorithms out there reading headlines of certain twitter accounts and reacting appropriately. After a while, the humans get an idea of what’s going on and they will jump into the market in reverse the situation. At this point, it looks as if the breakout will come, but now it’s a matter being very patient. I still believe in buying the British pound on dips, as I think there is a lot of value to be found here at a historically low price and of course if we get some type of resolution, they can only be good for this pair. Beyond that, if we can make a fresh, new high think that will add more momentum as well. At this point, even no deal would give some certainty, and I think value hunters would eventually show up. Because of this, I’m not necessarily looking to sell this market but I do look at pullbacks as buying opportunities.

GBP/USD Video 12.09.18