The British pound has been very volatile during the trading session on Monday, as we continue to see a lot of noise out there and a certain amount of volatility when it comes to the idea of what’s going to happen next and the Brexit. Ultimately, I do think that the market probably finds plenty of reasons to rollover but in the short term it looks as if we are going to go looking towards the resistance above. The 1.25 level above will be resistance, as there has been a major amount of noise there and of course the psychology of it is very crucial.
GBP/USD Video 10.09.19
At this point in time it’s very likely that the market will continue to be very noisy and perhaps grind its way higher but I think that the easier route most certainly is down from here, as the market participants will have to worry about what happens next with the Brexit. The Brexit is still completely up in the air and I think at this point we are probably looking at the sellers simply short covering at this point as there is so much in the way of noise and uncertainty. All things being equal, I believe that the 1.25 level will bring in massive selling and therefore that’s my play, simply waiting for signs of exhaustion in that area. The alternate scenario is that we roll over again and break down below the candle stick formed for the day on Monday, which is also a nice selling opportunity.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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