GBP/USD Price Forecast – British pound falls hard

The British pound initially tried to rally during the trading session on Tuesday, but then rolled over to break towards the 1.30 level. There should be a significant amount of support in this area though, extending down to about the 1.2975 handle. With that being the case, I suspect that we are going to simply bounce around in this area because quite frankly there are many headlines out there that have anything to do with the British pound and we have seen that the market seems to continue to go back and forth.

GBP/USD Video 08.05.19

Looking at this chart, it’s easy to see that even if we do break down, the 1.29 level should be rather supportive and therefore I don’t think that we have much more trouble than that coming. Ultimately, this is a market that I think will continue to be very difficult to deal with for anything more than a short-term play. There are simply far too many headlines out there that are possible that the British pound is pretty much a toxic asset.

Looking at this pair though, we are at historically low levels, and that something that shouldn’t be ignored. It is more than likely only a matter of time before we see a certain amount of value hunting, although we don’t seem to be near that now. That being said, I’m looking for dips to go long from a longer-term chart, but we aren’t quite that low yet.

Please let us know what you think in the comments below