GBP/USD Price Forecast – British Pound Ignores Negative Headlines

The British pound has rallied a bit during the trading session on Monday, reversing some of the losses from Friday and asking questions of whether or not the breakdown was legitimate. Quite frankly, it is a bit surprising that we have not completely fall apart considering all of the negative headlines around the world involving anything from trade wars to coronavirus numbers. After all, the US dollar is considered to be a “safety currency”, and of course the US stock market continues to outperform everything else.

GBP/USD Video 19.05.20

On the other side of the equation, you have the Brexit still looming large, and of course the massive amounts of concern when it comes to coronavirus numbers in the United Kingdom. Ultimately, it is likely that the British pound does rollover eventually, but it certainly is putting up a big fight. The 1.20 level underneath is still a target that I am paying attention to, so with that in mind I do not have any interest in trying to buy this market, even though it has bounced quite nicely on Monday. Quite frankly, by the end of the session or perhaps in the middle of the week, this will end up being yet another selling opportunity in the British pound. I see a lot of resistance near the 1.2250 level that will almost certainly come into play if we even rally that far. I fate short-term rallies and continue to ride to lower levels. As far as buying is concerned, I do not really have a scenario at the moment where I would be willing to do so but I have course will let you know if that changes.