GBP/USD Price Forecast – British pound breaks down to open week

The British pound has broken down significantly to kick off the week on Monday, as there are a lot of concerns about the Brexit right now. However, I think that the next 24 hours are going to be crucial as to where we go. The 1.29 level underneath is massive support based upon the longer-term charts, as it looks like the bottom of a “zone” in the Forex markets. If we break down below that zone, it’s a longer-term sell signal. Otherwise, if we turn around and bounce from there, we could see buyers come back into pick up a bit of value. This will be exacerbated by some type of good news coming out of the United Kingdom involving the Brexit.

If we were to break down, I think the next target would be the 1.2750 level, perhaps even the 1.25 level after that. The British pound continues to be very difficult, mainly because there are so many questions when it comes to this economy and the way forward for Great Britain. However, I do think that we are starting to get very cheap and longer-term traders are going to be looking at the possibility of the British pound offering value for longer-term “buy-and-hold” situation.

The volatility will be probably the one thing that you can count on in this pair, but that’s been the case for some time. I believe that it’s only a matter of time before we get a little bit more clarity, but right now it certainly looks as if the sellers are flexing their muscles.

GBP/USD Video 07.08.18