GBP/USD Price Forecast – British pound continues to hang at low levels

The British pound went back and forth during the trading session on Friday, as the jobs number of course came out exactly where expected. With that, it makes sense that we look at the longer-term trend and pay attention to the reality of the situation. When I look at the British pound, I see absolutely nothing that looks interesting from a long side perspective, and with the US dollar strengthening around the world, it makes quite a bit of sense that we should continue to see the British pound get hammered.

GBP/USD Video 05.08.19

To the downside, the 1.20 level will of course be massive support, and a large, round, psychologically significant figure that people will be paying quite a bit of attention to. If we were to break down below that level, that would be the next “flush” in the British pound to lower levels. Overall, I believe that market participants will continue to look at the British pound as far too toxic and uncertain to hang onto. The Brexit of course is the main reason, and therefore until the Brexit gets solved or at least some type of clarity comes to the situation, anytime the British pound rallies you should be looking for an opportunity to sell it. This is especially true against safety currency such as the US dollar or the Japanese yen for that matter. All things being equal, I believe that we continue to go lower for at least the next few months.

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