The British pound has rolled over a bit during the trading session on Wednesday, as the 1.22 level has offered a significant amount of resistance yet again. That being said though, the 1.2250 level is also resistance, and of course we have the 50 day EMA above which is painted in red should cause some issues as well. Remember, the Brexit is nowhere near being figured out, so I do believe at this point it’s only a matter of time before you start selling again.
GBP/USD Video 22.08.19
The most recent bounce of course has been so unsubstantial but the reality is that it’s a bounce from the 1.20 GBP level, which of course is a very significant scenario. That being said though, I think it’s only a matter of time before we break down below the 1.20 level and go much lower. At that point I suspect that were probably going to be looking towards the 1.15 GBP level, but that should. I think that as we raced towards a “no deal Brexit”, it’s only a matter time before we see a certain amount of a “flush lower” in this market and a bit of panic. At the point of capitulation, there’s probably a great opportunity to pick up British pound “on the cheap” as even the worst case scenario will eventually stabilize the market in the sense that at least at that point we know where we are going forward. We are a long way away from that though, so I simply look for rallies to sell.
This article was originally posted on FX Empire
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