GBP/USD Price Forecast – British pound rolls over
The British pound has initially tried to rally during the trading session on Thursday, but then rolled over rather significantly. The 1.27 level underneath is massive support, and I think that if we can break down below that level, then we could unwind rather drastically. The triangle measures for a move down to the 1.22 handle, so at this point I think that a break down below the 1.27 level should send this market into a much more aggressive momentum driven trade.
GBP/USD Video 30.11.18
I think at this point, every time we rally there will be seller stepping in, because the Brexit situation is going to continue to be a major problem. The 1.29 level above is massive resistance, but then again there is a major downtrend line above that is backed by the 200 day EMA on the daily chart as well. I don’t have any interest in buying this pair until we break above that moving average, something that we are far from doing right now. I also believe that there are a lot of concerns with Parliament passing anything dealing with the European Union, and therefore the market is starting to price in the idea of no deal as far as the Brexit is concerned. I think that it is only a matter of time before we break down, and as soon as we do, it’s time to get aggressively short of this market as we will also have a strengthening US dollar longer-term to propel lower pricing.