The British pound went back and forth during the week, forming a relatively neutral candle stick as the market has run into a lot of resistance at the 1.25 handle. That’s an area that coincides nicely with the 38.2% Fibonacci retracement level. The market breaking below the bottom of the candle stick for the week should send the British pound lower, maybe down to the lows yet again as the market has been negative for quite some time. Having said that though, the market had rallied a bit in a somewhat parabolic sense, perhaps in bits of hope that the Brexit either won’t happen or some type of deal will be reached. That being said though, the reality is nothing really has changed.
GBP/USD Video 23.09.19
There is a significant amount of resistance between current pricing and the 50% Fibonacci retracement level. That also features the 50 week EMA, showing signs of resistance and negativity as it continues to drift lower. All things being equal it looks as if the market will perhaps run out of steam and go lower. It is not until we break above the 50% Fibonacci retracement level that I would believe that the market could continue to go higher. That being said though, the Brexit will more than likely and poorly, because it’s been so poor over the last three years. The US dollar of course strengthens due to the US Treasury markets, and a flight to safety in US assets.
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This article was originally posted on FX Empire
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