GBP/USD Price Forecast – British pound continues to struggle

The British pound has fallen yet again during trading on Thursday, breaking below the 1.2850 level at the time of writing. I believe that the market will continue to show signs of struggle, and I think that the Brexit and all of its accompanying messy headlines will continue to be a major issue when it comes to trading this market. Overall, it makes sense that people are fleeing the United Kingdom as politicians simply cannot keep their opinions out of the marketplace. At the first signs of trouble, traders are bailing on this market.

Overall, I believe that there is value to be found here but obviously the markets are far too fear driven to put any money to work. I think that the longer-term traders are still starting to put in small bits and pieces of a longer-term “buy-and-hold” position, but something clearly needs to break. I do recognize that as soon as we get some type of resolution to the Brexit, the British pound will probably skyrocket, especially if it’s a signed agreement. Even if we get a hard Brexit, I suspect that there will be an initial selling, followed by a lot of value hunting as the demise of the United Kingdom has been greatly exaggerated at this point. I think the next support level is roughly 1.28, but I would wait for a day or two of stability before trying to play that level. Selling is probably difficult as well, because it will only take the slightest hint of good news to have this market rep right back to the upside. Essentially, the British pound is all but impossible to trade.

GBP/USD Video 26.10.18