GBP/USD Price Forecast – British pound continues to fall against the US dollar

The British pound has fallen again against the United States dollar, as we continue to see plenty of softness. Ultimately, this is a market that I think will continue to favor selling short-term rallies, and I believe that the 1.32 level above is going to be a bit of resistance barrier. With this, I think it’s only a matter of time before we have more negativity, as we have blown through the entire rally that formed after the more hawkish than expected statement coming from the Bank of England last week. Because of this, the market is very likely to continue its downward momentum towards the 1.30 level, and if we break down below that level, it’s likely that the market will break down even further.

The alternate scenario is that we turn around and break above the 1.32 handle, which could send this market towards the 1.33 level, perhaps even higher levels than that. However, I would point out that it’s very unlikely to happen in the short term, as we have seen so much in the way of bearish pressure. There has certainly been a significant shift to the downside, and I think that’s going to be difficult to overcome anytime soon. I would anticipate a significant bounce from the 1.30 level, so don’t be surprised if the market shows itself selling off again if we do get some type of bounce. Overall, I suspect that this is going to be a short-term selling opportunity type of market.

GBP/USD Video 29.06.18