GBP/USD Midday Technical Analysis for October 31

The British pound has rallied a bit during the trading session on Wednesday, reaching towards the 1.28 level, but failing to get there as I record this. As the Americans have stepped on board we have seen a little bit of support, but quite frankly this looks fleeting and the longer-term trend is still decidedly negative. Beyond that, we need some type of good news coming out of the Brexit for people to truly believe in the British pound, something that isn’t coming anytime soon. Granted, there will probably be some type of headline that crosses Twitter to gain the algorithm traders, but those rallies will almost certainly be sold because they are based upon innuendo and rumor, something that doesn’t stick.

GBP/USD Midday Video 31.10.18

I believe the 1.27 level is rather supportive though, so it may take a bit of bouncing around before we break down below there. If we do I believe that the market reaches down to the 1.25 handle underneath. Ultimately, this is a market that I think will aim for that level, but we may need to attempt the 1.27 level underneath several times to finally get that breakdown. That being said, this is a market that certainly can’t be bought because were starting to get other “risk off” factors as well.