The British pound has broken down a bit during the trading session on Thursday, slicing through the 50 day EMA, which of course is a technically important signal. However, we turned around of form a bit of support and now it looks like we are trying to rally again. It’s a bit difficult to get a grasp on what happens next due to the fact that the Brexit still continues to cause quite a bit of problems. Just above, I see the 1.25 GBP level as a major barrier there that’s going to be difficult to break above.
GBP/USD Video 13.09.19
Looking at this chart, if we can break down below the 1.2250 level, it’s very likely that we could break down towards the 1.20 level after that. All things being equal, it is a market that I will be looking to sell given enough time, but obviously right now it’s not the correct time to do so. I am simply waiting for some type of exhaustion above that I can take advantage of, especially if it’s near the 1.25 level which has previously been massive support and should now be massive resistance. That being said though, I am more than willing to sell on a break down below the 1.2250 level as well.
The one thing that I would point out is I don’t have a scenario right now that I would be willing to buy the British pound, with the possible exception of coming with some type of agreement with the European Union for the long term.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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