The British pound has been very noisy again during the trading session on Wednesday, as we had broken down below the 1.27 level, and then bounce significantly. However, the 1.28 level ended up causing a lot of resistance and we turn around and fell. Ultimately, this is a market that continues to be very noisy, and I think that headlines will continue to throw things around. If we break down to a fresh, new low though, then I think we could make for a larger move to the downside, perhaps down to the 1.22 level based upon the size of the descending triangle that we are currently in.
GBP/USD Video 06.12.18
As far as buying is concerned, I don’t have any interest in doing so, because quite frankly the British pound won’t be trustworthy until we get some type of deal agreed upon. If we do get that, then it’s likely that the British pound will have made a significant longer-term bottom. This of course depends on how well the deal is thought of, but I do think that once we get the uncertainty out of the way, it will only be a matter of time before we get an opportunity to enter a bit of a “buy-and-hold” market. Until then, it’s going to continue to be very volatile, and choppy to say the least. By all means I would keep my position small when it comes to the British pound right now, but clearly it looks as if the sellers are much more aggressive.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Gold Price Forecast – Gold markets hover just below major resistance
- Silver Price Forecast – Silver markets hover on Wednesday
- Crude Oil Price Forecast – crude oil markets rally on 10 Wednesday
- Bitcoin And Ethereum Daily Price Forecast – BTC & ETH Show Signs of Stability
- USD/JPY Price Forecast – US dollar bounces on Wednesday
- Gold Price Prediction – Prices Consolidate in Light Volume