The British pound initially tried to rally during the day on Wednesday but found enough resistance just below the 1.33 level to turn around and fall towards the 1.3225 level. I think overall we are consolidating because a lot of traders don’t know what to make of the situation with Teresa May and the Conservative members that are very unhappy with the proposed Chequers solution to exiting the European Union. With various resignations, a potential “no confidence vote” could come down the road, and that could lead to a harder Brexit. In short, this is a currency that has a lot of drama around it right now.
I believe that we will remain range bound for the short term, with the results being very unclear currently. That’s fine, there are plenty of currencies out there as a trade right now, but if you are short-term scalper, this might be a nice 100 pips range to go back and forth in for the next couple of days. Eventually, we will break out of this range and then it will be a matter of following that impulsive move. Until then, you could be talking about several nice short-term opportunities to pad your account a bit, picking up little bits and pieces along the way.
GBP/USD Video 12.07.18
This article was originally posted on FX Empire
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