The British pound has initially fallen during the trading session on Tuesday, but after Boris Johnson was announced as prime minister, it is a little bit more bullish at this point. Nonetheless, it really doesn’t matter though, as we are in a major downtrend and it makes sense that fading rallies will continue to be the best way to trade this market. After all, there is still a plethora of confusion as to how the Brexit is going to turn out, and there is a very real fear that the Brexit will be without a deal. That it will continue to weigh upon the value of the currency, so therefore I think rallies are to be faded.
GBP/USD Video 24.07.19
The 1.2550 level is the top of this block of resistance, so we don’t have any signal to go long of the British pound, regardless of the fact that it is starting to look more like a hammer. If we were to break above the 1.2550 level, we still have the 50 day EMA above to worry about, and then of course the 1.2750 level which has been massive resistance. I think at this point it’s only a matter of time before the sellers continue to be attracted to this market. In general, I believe that simply waiting for signs of exhaustion will continue to work, because quite frankly there is still a lot of noise out there when it comes to all things involving this currency pair.
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This article was originally posted on FX Empire
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