GBP/USD Price Forecast – British pound continues to drift lower

The British pound continues to look a bit soft against the US dollar, as we sit above major support at the 1.27 level. The market breaking down below there could send this market much lower, perhaps reaching down to the 1.22 level based upon the size of the triangle that it looks as we are trying to break through. The Brexit continues to cause a lot of issues and of course Parliament Will be voting for a couple of weeks, and therefore I think that a lot of headlines going to come out and spit the market occasionally. Quite frankly, I feel it’s only a matter time before we break down so I think that rallies should be faded.

GBP/USD Video 03.12.18

The downtrend line of the triangle been broken would be a significant turn of events and could send this market higher, mainly based upon the fact that the 200 day EMA is just above there. Ultimately, I feel that this is a market that continues to favor the downside, and the one reprieve that has been thrown the British pound has been that the Federal Reserve has softened its stance just a little bit over the last couple of days. Ultimately, I have no interest in buying this market until we break above the 200 day EMA.

If we did do that, then we could go as high as the 1.35 level, perhaps even higher than that. It’s almost impossible to imagine that happening without some type of Brexit agreement though, so at this point I think that the downside should still be favored over all.