GBP/USD Price Forecast – British pound rolls over

The British pound got rolled over a bit during the trading session on Monday, as people were concerned about the spat between the Americans and the Chinese yet again. Ultimately, this is a market that should continue to see a lot of volatility, mainly due to the Brexit. The fact that the Americans and the Chinese are starting to chirp at each other does not help the situation at all. However, it’s obvious that we have seen a bit of it trend change, at least for the short term so I suspect somewhere near the 1.30 level there should be buyers. The biggest problem of course is that it would only take some random tweet by somebody in Europe or the United Kingdom to send this thing all over the place.

GBP/USD Video 07.05.19

If we do break the 1.30 level then I think the next target would be the 1.29 level, and I would expect some push by the bullish at that level. If we turn around and rally, then I think the 1.32 level being broken would be a good sign that we could go to the 1.33 handle. Regardless, this is going to be very choppy and volatile, and I think that’s going to be the case for at least the next few weeks, if not the next few months. If we can get some type of resolution with the Brexit though, that could send the British pound much higher as we would finally have some type of certainty.

Please let us know what you think in the comments below