GBP/USD Price Forecast – British pound falls hard on Monday

The British pound has broken down significantly during the day on Monday, slicing towards the 1.31 handle. By doing so, it looks as if the British pound is going to continue to sell off, as the 1.32 level has offered far too much in the way of resistance, and it also looks as if this is a bit of a “risk off” type of situation, as the US dollar will offer safety in the form of treasury markets. I believe that we could get a bit of a short-term bounce, but that should offer an opportunity for sellers to get involved as long as the trade tariff situation looks so dire.

The 1.32 level above will start to offer a bit of a “ceiling” in the market, and I think that the 1.3050 level in the short term is going to offer a bit of a “floor” in the market. However, I think that the market is probably going to go looking towards 1.30 level, as traders run for cover. It’s not until we get some type of reconciliation between the Chinese and the Americans that we can start to see more of a “risk on” move in the currency markets, and I think that may not be coming for a while. Things are about to get very bumpy, and in those situations the US dollar almost always wins.

GBP/USD Video 03.07.18