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

The British pound fell again during the trading session on Thursday after forming an inverted hammer on Wednesday. At this point, the market looks as if it is going to go to the next round figure, which of course is the 1.20 level underneath.
Christopher Lewis
GBP/USD daily chart, August 02, 2019

The British pound broke down a bit during the trading session again on Thursday as we head toward the jobs figure. Ultimately, this is a market that is very negative, and it’s likely that we are going to continue to see selling pressure but at this point we are getting a bit oversold and therefore what I’m looking for is some type of exhaustive candle after a bounce, possibly created by the jobs figure throwing volatility into the market.

GBP/USD Video 02.08.19

At this point, I believe that the 1.20 level will be too attractive of a market level for people to ignore. I would desperately like to see a bounce between here and there that could give us a bit of value in the US dollar. The 1.2350 level is resistance, extending all the way to the psychologically and structurally important 1.25 handle. I would love to see some type of opportunity in that level but quite frankly I don’t know that it’s going to happen. Regardless though, we need some type of bounce to take advantage of.

If we were to simply just fall below the 1.20 level, then it’s likely that this market will continue to fall rather drastically and I do think it will happen given enough time because of the Brexit and the fact that we won’t have the actual split between the UK and the EU until October 31. There is a lot of damage that can be done between now and then.

Please let us know what you think in the comments below

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