GBP/USD Price Forecast – British pound breaks support

It’s obvious to me that the British pound is very weak, and of course breaking below the 1.25 level is a huge signal. However, with Jerome Powell speaking in front of Congress for the session, there is the possibility that we get a complete turnaround. With that being the case it will be the daily close that I am paying attention to before putting money to work. If we can break above the highs of the candle stick on Monday, then I would be a buyer, perhaps reaching towards the 1.2750 level. However, as the market closes below the 1.2450 level, then I would be a massive seller. At that point I would expect 200 pips as well.

GBP/USD Video 10.07.19

The question will be whether or not we are going to focus on the Federal Reserve, or are we going to focus on the Brexit? The problem is that the market could do both at the same time, causing mass chaos. Clearly, it’s much easier to look for selling opportunities than buying opportunities, so even if we do turn around and break above the 1.25 handle substantially, it’s very likely that somewhere near the 1.27 level or so is a selling scenario.

Quite frankly, this is the market telling the British that they need to get their acts together, as the Brexit has gone on for three years now. As long as that’s the case, you still have to favor the downside the question is whether or not you can do it now, or if you can do it from higher levels?

Please let us know what you think in the comments below