The British pound has rallied a bit during the trading session on Wednesday, reaching towards the significant 1.30 level. If we can close above it on a daily candlestick, then it is a bullish sign. Otherwise, it is very likely that we could find a lot of selling pressure in this area. Quite frankly, it is a bit difficult to get overly excited about the British pound right now, because we have so much in the way of potential noise out there when it comes to Brexit. Quite frankly, you may find that this market moves 100 pips before you even read about whatever someone said.
GBP/USD Video 17.09.20
For those of you have been trading the British pound for a while, you will remember that a couple of years ago we had algorithmic buying and selling based upon Twitter feeds that were driving this pair crazy. I suspect that we are heading right back into that scenario again, due to the fact that the United Kingdom and the European Union are so far apart when it comes to agreeing on how to split things up. That being said, we have been in an uptrend for some time but it is obvious that there is a lot of resistance just above as well, so I think what you are looking at here is going to be a lot of choppy behavior, and if you are going to trade the British pound you probably need to trade it from a short-term perspective, and most certainly with a smaller position size.
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