GBP/USD Price Forecast – British pound rolls over a bit

The British pound has fallen during the trading session on Wednesday, reaching towards the vital 1.30 level. We have broken below this level before though, so it’s not exactly an possible that we continue to go lower. In general, we obviously have the Brexit to worry about which of course moves the British pound in and of itself. Beyond that, we also have the nonsense going on between the Americans and the Chinese, which of course causes a lot of concern.

GBP/USD Video 09.05.19

Looking at this pair, if we break down below the 1.30 level, then we probably go down to the 1.29 level. That’s an area that shows a lot of support previously, so at that point we may have some value hunting going on. Ultimately, this is a marketplace that has a lot of noise and news around it, so it’s going to be difficult to hang on to the position for longer-term, and therefore you may find it beneficial to ignore the British pound altogether. I recognize that a lot of the headlines are around the British pound in Brexit, but that causes a lot of machine based trading which doesn’t necessarily use logic and may simply move due to different words crossing newswires. Given enough time though, I do believe that we are at historically cheap levels right now and it’s very likely that we will eventually go higher. In the meantime, finding value on dips might make sense, but only in small bits and pieces.

Please let us know what you think in the comments below