GBP/USD Price Forecast – British pound continues to struggle

The British pound has tested the 1.27 level during trading on Wednesday, an area that has previously been very supportive, so it now should be resistive. Beyond that, the 50 day EMA above of course will cause a bit of technical resistance as well, and I think that at this point it’s likely that sellers will continue to jump in and push this market to the downside based upon the Brexit. I think there is still far too much in the way of fear out there and uncertainty to lift the British pound for any length of time.

GBP/USD Video 27.12.18

Based upon the descending triangle above, I believe that this market will go looking towards 1.22 handle, and quite frankly it won’t take more than some type of negative headline to push this pair lower again. Rallies are to be faded, and I think that it’s only a matter of time before the sellers overwhelm the buyers again. Ultimately, this is a market that I think cannot be bought, at least not until we get some type of resolution to the entire scenario. Quite frankly, I think part of the reason that we rallied is that the holidays are coming, and perhaps there was a bit of short covering ahead of them. If we did break above the 50 EMA, we could go rallying towards the 200 day EMA, but I don’t think it’s going to happen based upon the candlestick formation of both Monday and Wednesday. Negativity should return to the market rather soon.