GBP/USD Price Forecast – British pound falls to open week

The British pound has fallen a bit to kick off the week against the US dollar, reaching down below the 1.27 level again. Quite frankly, this is a pair that will continue to be very noisy because of the Brexit and of course the fact that the Federal Reserve is trying to soften the US dollar. In other words, there’s a lot of “push pull” going on right now. I do believe that the market is trying to find a bottom, but we need some type of good news coming out of the Brexit in order to make that happen.

GBP/USD Video 11.06.19

I believe that the 1.25 level underneath is massive support, and therefore if we did break down below there it would be a major turn of events. I don’t expect to see that happen, but it is a possibility that we need to keep in the back of our head. If we were to break down below there, it could open up a move down to the 1.20 level after that.

To the upside, I suspect that we need to break above the 1.2750 level to go looking towards the 1.28 handle, followed by the 1.30 level. At this point, I think it’s a bit difficult to get overly bullish of this pair, but clearly we have to start asking whether or not we are starting to form some type of base here? I suspect that we may be, and therefore am looking for buying opportunities at lower levels.

Please let us know what you think in the comments below