The British pound rallied a bit during the trading week, bouncing from the 1.20 level. That is a large, round, psychologically significant figure that of course would attract a lot of attention. At this point, the market looks very likely to recognize that area as a major level. At this point, it’s very likely to see selling pressure come in and as the market is so negative. Keep in mind that the Brexit is of course still in a major problem for the British pound and as a result it’s likely that the British pound will be able to keep gains for any significant amount of time. Ultimately, I believe that we are eventually going to break down below the 1.20 level but obviously it also is an area that will attract a lot of attention.
GBP/USD Video 19.08.19
If we do break down below the 1.20 level, it’s likely that the market goes down to the 1.18 handle, and then eventually the 1.15 level after that. Ultimately, the Treasury markets have been attracting a lot of money in this major “risk off” attitude around the world, so it makes sense that the US dollar would continue to attract a lot of attention. Fading rallies will continue to be the way going forward, so at this point I have no interest in buying any type of bounce that could occur. I simply look at it as potential value in the greenback and therefore I will take advantage of it.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/USD Weekly Price Forecast – British pound bounces for the week
- USD/JPY Weekly Price Forecast – US dollar volatile and positive against Japanese yen
- Gold Weekly Price Forecast – Gold markets show signs of exhaustion
- AUD/USD Weekly Price Forecast – Australian dollar chops for the week
- EUR/USD Forex Technical Analysis – Close Over 1.1110 Forms Closing Price Reversal Bottom
- GBP/JPY Weekly Price Forecast – British pound recovers for the week