The British pound went back and forth during the trading session on Tuesday, as traders came back from the Easter weekend. We initially went higher during the Asian session, but as Europe went into its afternoon, the market broke down through the 1.2950 level. There is a significant amount of downward pressure on this market, but I’m not looking for some type of meltdown. It is a situation where I think we are simply going to drift lower because the market doesn’t have anything else to do. The market is going to suffer from a lack of good news, and that may be the case for some time. The market could drift down towards the blue box that I have on the chart, and the descending triangle that we just broke down through measures for a move to roughly the middle of that box.
GBP/USD Video 24.04.19
The previous downtrend line should offer support, so I think that’s about as far as it goes. It’s not necessarily that I think that the British pound is suddenly going to collapse, I think we just don’t have a compelling reason for most traders to buy this currency. However, once we get some type of resolution to the Brexit I suspect we will have put the bottom in when it comes to the Sterling, and it will become a longer-term “buy-and-hold” scenario. I’d be a short-term seller, but I’m not expecting fireworks anytime soon. With that in mind, if we broke back above the top of the descending triangle that of course that changes everything.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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