GBP/USD Price Forecast – British pound looking for support

The British pound fell during the trading session on Wednesday, reaching down to the 1.29 level, which is an area that of course would attract a lot of attention as it is a round figure. We turned around to bounce significantly, but it also looks as if we have a lot of resistance above at the downtrend line, and ultimately I think the downtrend is most certainly intact even though we have bounced a bit. I believe that we are only one headlight away from more bearish pressure. Quite frankly, the Algo traders have taken over this market, because every time there is some type of headline coming out of Twitter, we get a sudden move only to see it faded later. It shows that traders are trying to buy the pound, but quite frankly there hasn’t been reason enough to believe in the longer-term story. It’s not until we break above the downtrend line above, or perhaps even the 1.35 level that I truly believe in buying.

GBP/USD Video 15.11.18

The 1.27 level underneath is massive support, and I think that if we were to break down below there we could go much lower, perhaps down to the 1.22 handle. That’s an area that has been important more than once, and I think that we will continue to offer support, but if we break down below there it would be a major break down of longer-term support. We are forming somewhat of a descending triangle, which of course is bearish.