GBP/USD Price Forecast – British pound continues to fall

The British pound has followed up on the downtrend yet again on Friday, as we continue to see the 1.24 level a target. I think we do break down below there given enough time though, perhaps reaching down to the 1.2250 level and then the 1.20 level. This market continues to struggle with the idea of the Brexit, and all of the headlines that come along with that. The US dollar is considered to be a safety currency, especially when it comes to all things European related. That being said, we also have the Federal Reserve that we need to be paying attention to next.

GBP/USD Video 29.07.19

The Federal Reserve is expected to cut rates, and that won’t be much of a surprise. The question is whether or not the statement is overly dovish. If it is, that could cause a lot of reversal momentum, but quite frankly it’s not until we break above the 1.2750 level would I be interested in going long. I think at this point every time we rally; you need to be looking for selling opportunities. The 1.26 level is the top of the 1.25 resistance barrier, and quite frankly I think it would take a massive amount of momentum to finally break through there. All things being equal, we are in a downtrend and that probably doesn’t change anytime soon. This might be the one outlier that the Federal Reserve can’t reverse, because the odds of a “no deal Brexit” certainly seem to be relatively high at this point. I remain bearish.

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