The British pound initially tried to rally significantly during the trading session on Friday but has given back quite a bit of the gains and felt again. At this point, it looks as if there is a significant amount of resistance extending all the way to the 1.28 level at this point in time. Signs of exhaustion will be jumped on by traders, but at this point in time it’s likely that the 1.28 level above is going to be a massive barrier to overcome. If you can break above there, the market could go to the 1.30 level above. It seems very unlikely at this point though, because quite frankly this is a market that simply can’t find any hope at this point in time.
GBP/USD Video 27.05.19
We need to see the Brexit get solved before the British pound can take out to the upside. In general, this is a market that I think will continue to attract a lot of selling pressure throughout the summer, but we will have the occasional “rip your face off rally.” The 1.25 level underneath is massive support underneath, and I think breaking below there could really get this market reeling. It’s probably better off for traders to simply wait for short-term rallies that you can take advantage of and continue to buy the US dollar. If we break above the 1.28 level that does change things for the short term, but obviously we need some clarity with the Brexit.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Crude Oil Weekly Price Forecast – Crude oil markets collapse
- Forex Daily Recap – Cable Shoots on New Prime Minister Hopes
- Gold Price Prediction – Gold Rebounds on Brexit Concerns
- Gold Price Forecast – Gold markets stabilize going into the weekend
- GBP/USD Weekly Price Forecast – British pound stabilizes slightly
- US Stock Market Overview – Stocks Rise Led by Financials – Semis Weigh on the Tech Sector