GBP/USD Price Forecast – British pound find buyers

The British pound has fallen a bit during the trading session on Tuesday but turned around to show signs of life as by the time mid-day came around we have started to form a hammer. That is crucial, and that tells me that the market is very likely to try to turn around and reach towards 1.28 level again. If we can clear that area, then it would confirm an inverted head and shoulders which of course is a very bullish set up, perhaps sending this market to the crucial 1.30 level above there.

GBP/USD Video 03.07.19

If we were to break down below the lows of the day, then it opens up the idea of perhaps revisiting the 1.25 handle, which in and of itself would necessarily be a huge surprise either, especially considering that the Brexit still causes a lot of issues and confusion to say the least. The market simply doesn’t know what to do yet, because UK lawmakers have no idea what to do. As soon as they do their jobs, we can do ours. Until then the British pound is going to be very difficult to deal with and will cause a lot of headaches going forward.

In the short term expect a lot of choppiness but pay attention to the fact that we may be trying to form a bottoming pattern, which is very interesting considering that the British pound has been under so much pressure. However, you should also keep in mind that the Federal Reserve is looking to cut interest rate so that might be part of what’s driving this.

Please let us know what you think in the comments below