GBP/USD Price Forecast – British pound gets minor bid

The British pound rallied a bit during the trading session on Monday, reaching towards the 1.2850 level. There is enough resistance above that I think the market will continue to struggle, and I also believe that the Brexit of course will continue to weigh upon the currency. After all, even though Teresa May and the EU have come to an agreement, the British Parliament doesn’t seem to be ready to jump on board. The 1.27 level underneath continues to be important and attract a lot of attention, so keep that in mind. In fact, if we were to break down below that level could change things drastically.

GBP/USD Video 27.11.18

If we were to break down below the 1.27 handle, then I think the market will probably continue to go much lower, and the measured move of the descending triangle that we are currently trading and would suggest that we could go as low as 1.22 underneath. If that’s going to be the case, then I anticipate that we will get a bit of an acceleration of selling pressure.

The next catalyst for that move will be Parliament refusing to go along with the agreement. If they do, that will probably be the catalyst for further selling. Otherwise, we will probably continue to consolidate with a somewhat negative attitude in general. If the market rallies, it’s very likely that we will fail and have another opportunity to start shorting again as we are in such a strong downtrend and of course the US dollar has been strong against most currencies anyway.