GBP/USD Price Forecast – British pound continues to grind lowerThe British pound went back and forth during the trading session on Wednesday, as we continue to see a lot of back-and-forth. We did break down below the bottom of the descending triangle the previous session, so that of course is very bearish.
The British pound went back and forth during the trading session on Wednesday, as we continue to grind lower in general. The market has broken down below the bottom of the descending triangle and as you can see on the chart I have marked out the measured move. The measured move is perfect in the sense that it goes looking for the previous downtrend line that should now offer plenty of support. With that being the case, I believe that part of the reason that we are going to see British pound weakness is a simple lack of directionality when it comes to the Brexit. There is a lot of political intrigue going on in London right now, so quite frankly why would traders be bothered owning the currency?
GBP/USD Video 25.04.19
With all that being the case, I am a seller. I do believe longer term the British pound will turn around and shoot much higher, because the previous reports of the demise of the United Kingdom of course were premature. The market continues to offer very little in the way of momentum, but quite frankly I believe that it makes sense that we simply drift lower. In fact, I’m not willing to buy until we get down towards the blue box on my chart, or unless we break down below the previous downtrend line on the descending triangle that we just broke out of. That probably isn’t going to happen very soon, so I suppose a small short position in simply hanging on is the best way to play it.
Please let us know what you think in the comments below