GBP/USD Price Forecast – British pound falls on Friday

The British pound continues to struggle, based mainly upon the Brexit obviously. The headlines continue to trick Algo traders into buying and selling this pair, but when you look at the overall attitude of the market it is still most decidedly negative. I do think that there are some people out there looking to buy the British pound based upon it being cheap, but I think we probably have one more major flush to the downside.

GBP/USD Video 26.11.18

The 1.27 level underneath is massive support, and I think once we break down below there it’s likely that the market will fulfill the measurement of the descending triangle that we are currently in, meaning that we are going to go down to the 1.22 handle. I think it’s only a matter of time before we get enough negativity out there to send the sellers jumping into this market with even more force. Teresa May is putting forth a plan to Parliament that I think won’t pass. If that’s the case, that could be the reason for the British pound finally break down. The downtrend line at the top of the descending triangle should continue to put the market on the back foot, just as the 200 day EMA will which is currently sloping right along with that downtrend line. I’m a seller of rallies on signs of exhaustion, as algorithmic traders continue to get tricked by Twitter. With that, look for those sudden surges and stability and continue to sell as it’s worked out quite well.