GBP/USD Price Forecast – British pound collapses on Friday as May stands tough
The British pound fell as Teresa May stated that she was unwilling to change her stance on the Brexit. She says that a couple of issues are still far apart, and therefore the UK and the EU are at a bit of an impasse. Ultimately, this is a market that has sold off quite drastically occasionally but has ended up being a buying opportunity over the long term. I think at this point, it’s worth noting that the 1.3050 level is the beginning of significant support down to the 1.30 level underneath. It’s because of this that I think it’s only a matter of time before the buyers step back in, although I certainly would be patient enough to wait until a little bit of stabilization on Monday, if you get the opportunity. The market has broken out above a major downtrend line, and of course the psychologically important 1.30 level. Those were both very strong sign, and typically it means that we should eventually find value hunters jumping back in.
Ultimately, this is a market that is one you should probably steer clear of, and let it do its thing. It will show you a trading opportunity given enough time. If you’re looking to sell this pair, you’ve already missed the trading there’s no point in risking that type of money. Ultimately, I believe that the British pound will get a headline rather soon the turn things around and gets the buyers involved.