GBP/USD Price Forecast – British pound continues falling towards supportThe British pound fell during the bulk of the session on Monday and Tuesday, but later in the Tuesday session we did get a bit of a bounce from the 1.28 region. That’s a good sign, so will have to see what happens next but it looks like we are trying to turn around and fill that gap.
The British pound has rallied slightly as the Americans came on board, but there is still plenty of resistance above. At best, we will probably try to go fill that gap, something that is a phenomenon you see quite often in the Forex world. However, I think the 1.28 level being broken to the downside could send this market down to the vital 1.2750 level. It will be interesting to see how this plays out, but certainly we still have a lot of concerns when it comes to British politics, and the impending Brexit. With all of that being said, I do not think that the market is quite ready to continue going higher, but as we have seen recently, at the first signs of some type of agreement with the European Union, or even just the head of it, this pair will explode to the upside.
If we were to break down below the 1.2750 level, the market would continue to whine quite drastically to the downside, perhaps reaching as low as 1.25 over the next several sessions. However, I think that this market will continue to move on headlines more than anything else, and it’s likely that we will be very erratic to say the least. Volatility will make for great trading, but only if you get the move correct. Otherwise, this could be a very difficult market to be involved in.