The British pound has shown signs of negativity during the trading session on Monday after initially reaching towards the 50 day EMA. By rolling over the way we have, we look likely to form a bit of a shooting star at a resistive area. The 1.2750 level has been a problem for some time, but I do recognize that if we were to turn around and break above the 1.28 level, the British pound would be a currency that you do want to own, at least in the short term and up to the 1.30 level.
GBP/USD Video 25.06.19
The fact that the market could not hang onto gains during the trading session tells us quite a bit though. The 50 day EMA is just above, and that should continue to offer resistance. Ultimately, I think that the market probably finds reasons to fall from here, not the least of which of course will be the Brexit. Quite frankly, the Federal Reserve stepping away from its hawkish stance gave this pair a bit of a bounce. The real question now is whether or not we fall from here, but whether or not the next low is higher than the previous one. If it is, then it confirms my suspicions that we are trying to form some type of bottoming pattern. While I do believe that the British pound is going to fall, I would be more interested in simply observing right now, because I think we should get a relatively obvious signal soon.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Futures Weighed by Geopolitical Tensions, Upcoming Fed Speeches in Focus
- AUD/USD Price Forecast – Australian dollar continues to grind higher
- Price of Gold Fundamental Daily Forecast – Fed Speakers May Not Say Anything Markets Haven’t Priced In
- E-mini S&P 500 Index (ES) Futures Technical Analysis – June 25, 2019 Forecast
- Natural Gas Price Prediction – Prices Remain Flat Despite Rise in LNG Exports
- Natural Gas Price Forecast – Natural gas markets fall slightly on Tuesday