GBP/USD Price Forecast – British pound continues to churn

The British pound went back and forth over the last 24 hours, initially crashing through the 1.25 level before turning around and showing signs of life again. However, with the massive amount of destruction that was done during the session on Wednesday, I feel it’s only a matter of time before we can start selling again.
Christopher Lewis
GBP/USD daily chart, January 04, 2019

The British pound has rallied a bit during early trading on Thursday, in a bit of relief rally after the market crashing on Wednesday and slicing through the 1.25 handle. However, I suspect that with today being Nonfarm Payroll Friday, it’s possible that we may be setting up for another selling opportunity, especially near the 1.27 level if we get that high. Obviously, this is still a very bearish pair and with the Brexit going on it makes sense that traders will continue to prefer selling Sterling, but these bounces should be looked at as short-term opportunities.

GBP/USD Video 04.01.19

As I’ve been saying for some time, the descending triangle measures for a move to the 1.22 handle, but unfortunately it is taking a while to get down there. However, remember that a projection of a technical pattern doesn’t suggest when it’s going to happen, only where it should go. The 50 day EMA has offered massive resistance, so it looks likely that the downtrend will stay very much intact and therefore I think you should ignore bounces as far as buying opportunities are concerned and look for short-term selling opportunities. I think that we will get a lot of choppiness, which of course makes a significant amount of sense as headlines will cross back and forth that will have algorithmic traders jumping in and out of the market as well. Nonetheless, the overall attitude of the market is most decidedly to the downside.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.