GBP/USD Price Forecast – British pound softens to kick off week against greenbackThe British pound sold off against the greenback to kick off the week on Monday, dropping down towards the 1.3050 level. However, I think there is even more support underneath, and I think that traders will probably go looking towards the crucial round figure sitting just below.
The British pound has broken down a bit during the trading session on Monday to kick off the week against the greenback, as fears continue about a trade war, the Brexit, and now it appears that a general “risk off” attitude has grip the markets in general. Ultimately, I think that the British pound is cheap, and I think that the 1.30 level underneath will attract a lot of attention. Because of this, I’m willing to buy this market on signs of support or a bounce from that region, and in the meantime will simply be sitting on the sidelines and waiting for my opportunity.
We have seen a major reversal of fortune for the British pound during the European trading session, and I think a lot of this might come down to the European Union rejecting the Italian budget. While that doesn’t necessarily have a direct correlation to the United Kingdom, I think it shows just how nervous most market participants are at this point. I do believe that it’s only a matter of time before the value hunters come back in though, so what I’m waiting for is several hours of stability to take advantage of, and then I will start buying the British pound “on the cheap” again. If we break down below the 1.30 level, then we could go down to the 1.2950 level next which is where the previous downtrend line that coincides and crosses.