GBP/USD Price Forecast – British pound rallies from support

The British pound tried to rally during the trading session on Wednesday, but as you can see the 1.27 level has been crucial yet again. I think at this point, there is plenty of resistance above to keep this market going lower, so I think it’s only a matter time before the sellers step back in. Overall, I do like the idea of shorting this market but I also recognize that we will get the occasional bounce to give the British pound some life. However, with all things Brexit going on there’s only a matter of time before we get some type of negative headline that spooks the market, and therefore bring selling back into the equation again.

GBP/USD Video 29.11.18

If we do break down below the 1.27 level, and I think we will eventually, it unwinds the market down to the 1.22 level based upon the measured move of the descending triangle. I think at this point, what we will probably see is rallies continues to be faded, with some type of headline coming out of the United Kingdom, perhaps Parliament refusing to pass the agreement between Teresa May and the European Union, and then a flush that sends this market much lower. It’s not until we break above the top of the descending triangle that I’m even remotely considering buying the British pound. If it does break above there, it could signal a trend change, which could be the beginning of a longer-term move.