GBP/USD Price Forecast – British pound continues to soften

The British pound fell again during the trading session on Wednesday, and the Americans started selling right away. It looks as if we are trying to break down towards the next psychologically important level, the 1.25 handle. At this point, I suspect that we will eventually find that level to be the next major battleground, and as long as the Brexit continues to be a big question, I believe that a lot of people are going to be concerned about owning the British pound. That being said, we are getting a bit overextended occasionally, so that’s why we get these flat areas like we just went through. I anticipate that the 1.25 level will attract a lot of attention, so therefore that would be my target and I would be willing to take profit just above that level.

On the upside, the 1.2750 level is probably the ceiling at the moment, as it was previous support. I would be willing to sell rallies that show signs of exhaustion near that area, and I believe that selling the rallies continues to be the best way to attack this market on the short-term charts. Longer-term trades are a bit difficult, unless you keep them small in size, and perhaps look for those large round numbers. This pair will move on headlines, so keep that in mind as it will be the center of the currency universe over the next couple of months.

GBP/USD Video 16.08.18