GBP/USD Price Forecast – British pound continues to break down

The British pound try to rally initially during the trading session on Thursday but continues to break down. Now that we are below the 1.29 level we will be focusing on the 1.28 level underneath which is the 100% Fibonacci retracement level from the retest of the uptrend line. After that, I suspect that we will go towards the uptrend line, which is exactly what the descending triangle measures for. That being said, it doesn’t necessarily mean it’s going to happen right away and I think that this is going to be more of a low level grind to these lower levels. Quite frankly, the Brexit being delayed means that we will continue to get a lot of noise politically, and therefore it’s very unlikely that there is going to be any real reason to own the British pound anytime soon.

GBP/USD Video 26.04.19

To the upside, the previous support line of the descending triangle will of course offer resistance, so it’s really not until we take out the breakdown candle from Tuesday that you can consider buying. This is a market that looks very broken and of course the US dollar has shown strength against pretty much everything so at this point it’s difficult to imagine a scenario where we would be buyers until we saw an extreme move higher or perhaps some type of support at the lower level targets that I had mentioned previously. Ultimately, the British pound is going to suffer at the hands of the US dollar, and then possibly other currencies depending on the political noise. The US dollar is its own thing right now though, as it is the “only game in town.”

Please let us know what you think in the comments below