The British pound went back and forth during the trading session on Wednesday, eventually slumping a bit. That being said, the British pound is a bit soft as the Brexit drags on. Quite frankly, there’s no reason to jump into the British pound at this point with a significant amount of money. However, if we were to break above the 1.28 level that could send this market much higher and allow for the pair to go looking towards 1.30 level after that. That being said, it would take a significant amount of bullish pressure to make that happen, and probably some type of resolution to the Brexit.
GBP/USD Video 27.06.19
On the other side of that equation is the fact that the Federal Reserve is likely to cut rates later this year, so that does give us a little bit of hope to the upside. However, it looks as if we will pull back in the short term and find more buyers. If we can make a “higher low”, then that could confirm a bit of a bottoming pattern. However, if we were to break down below the 1.25 handle, this market would probably break down significantly and down towards the 1.2250 level, followed by the 1.20 level after that. This is a market that would break down significantly if we get more of a break down in the Brexit, but right now I think we are entering the summertime and that typically means that markets quiet down. We are in a bit of a scenario where the markets just simply don’t have anywhere to be.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/JPY Price Forecast – British pound rallies on Thursday
- Natural Gas Price Forecast – Natural gas grinds higher
- EUR/AUD Fresh Sellers are Waiting Within the POC Zone
- E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 27, 2019 Forecast
- E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Likely Rangebound into Close
- Silver Price Forecast – Silver markets find support