GBP/USD Price Forecast – British pound looks for a bottom

The British pound initially fell during the trading session on Friday but found enough support under those levels to bounce significantly and reach higher. We have formed a hammer, which of course is a very bullish sign. With that being said, it looks very likely that we could continue to go higher, reaching towards the 1.28 level which is a massive resistance barrier. If we can break above there, then it’s very likely that the market goes to the 1.30 level after that.

GBP/USD Video 03.06.19

To the downside, the 1.25 level continues to be massive support, so if we can break down below there it’s likely that the market will fall apart. At that point I would anticipate a move to the 1.20 level underneath. Ultimately, this is a market that is going to be very sensitive to global headlines, but most importantly is going to be very sensitive to the Brexit. As you probably know by now, the Brexit has been an absolute mess, and therefore I would expect a lot of volatility. It does look to me as if we are trying to form a short-term bounce though, so buyers will probably take over, at least for the next few days.

I do believe that eventually the British pound will be thought of as cheap, but right now we don’t have enough stability to put a lot of money in that market. That doesn’t mean that we will get the short-term bounce, but I do think that eventually there will be one more “flush lower” that comes to play before we finally bottom.

Please let us know what you think in the comments below