GBP/USD Price Forecast – British pound dumps againThe British pound broke through major support during the session on Monday as it was revealed that the Brexit boat may be put back. If it is, then shows just how much of an uphill battle there is to get a deal through Parliament.
If the Brexit boat is indeed delayed, it could be very bad news for the British pound as it shows just how hard it’s going to be to gain any traction for a deal. As long as that’s the case, you have to favor the downside, especially if the Federal Reserve is going to raise interest rates a couple of times in the next year or so. Quite frankly, I think the only thing that’s keeping this market afloat now is the fact that the Federal Reserve has softened its stand a bit. Most traders will be much more couple with the greenback in comparison of the British pound, simply because there’s so much in the way of uncertainty.
GBP/USD Video 11.12.18
Rallies at this point in time are probably going to be selling opportunities, with the 1.27 level which was so supportive in the past offering plenty of resistance. At this point in time, I’m looking for signs of exhaustive candles on short-term charts to take advantage of so that we can continue to sell off. The descending triangle that we have just broken through should measure for a move down to the 1.22 handle, so I think we have much further to go, especially if we continue to get bad news. In fact, between now and the end of the year the British pound might be the main currency to trade as a lot of other currency pairs will probably dry up as far as liquidity is concerned. I am not interested in buying this currency.