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GBP/USD Price Forecast – the British pound continues to chop

The British pound has gone back and forth during the trading session on Wednesday, as we continue to try to figure out where to go next. This makes sense though, because the Brexit continues to be a major disaster.
Christopher Lewis
GBP/USD daily chart, August 08, 2019

The British pound went back and forth during the trading session yet again during the day on Wednesday, as we continue to wrestle with the idea of the 1.2150 level. At this point, we are in a relatively small consolidation area between the 1.22 level and the 1.2050 level. Overall, I have been sitting on the sidelines and waiting for some type of impulsive candle to trade this market. At this point, if we can break down below the consolidation and possibly even the 1.20 level as it is a large, round, psychologically significant figure, then it is another sell signal as it would be an expression of accelerating bearish pressure.

USD/JPY Video 08.08.19

Rallies at this point will be sold into, so I’m trying to decide whether or not I would be selling at higher levels, or at lower levels. The lavender box on the chart that starts at the 1.2350 level, and it extends to the 1.25 handle. That is a major resistance barrier, not only because of the previous action, but also the fact that we have the large, round, psychologically significant figure there, and then we also have the 50 day EMA slicing through that level. In other words, there’s no real scenario where I’m a buyer, especially considering that the Brexit will continue to cause major issues. Overall, it’s likely that we will see a lot of trouble with the British pound, and sell look at any rally as a potential value opportunity in the greenback going forward.

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