GBP/USD Price Forecast – British pound choppy on Monday session

The British pound has gone back and forth during the trading session on Monday as traders came back to work from what was a very noisy weekend. Teresa May looks likely to see a lot of trouble with her Brexit plans, and therefore a “no deal Brexit” is very possible. If that’s going to be the case, the 1.27 level underneath will almost certainly get broken, and once it does this pair should go much lower, perhaps reaching towards the bottom of the descending triangle I have marked out, suggesting the 1.22 handle.

GBP/USD Video 20.11.18

Ultimately, I think it makes a lot of sense that the pair does break down, and I think it’s also prudent to sell rallies going forward. Signs of exhaustion will be seen on shorter-term charts, and though shorter term charts could lead to better entries. I believe that the downtrend line being backed by the 200 day moving average of course has a lot of resistance above, and it makes sense that the sellers will be very aggressive in that area if we do get some type of significant bounds. Quite frankly, most of the bounces  that we get in the GBP have been based upon rumors coming across headlines and Twitter and are typically reactions by Algo trading. They are almost always faded within the hour.