GBP/USD Price Forecast – British pound still under threat

The British pound has done very little during the trading session on Wednesday, rallying ever so slightly but showing signs of exhaustion near the 1.32 level on the short-term charts. This confirms that the 1.32 level is an area of interest, and I think it will continue to be so. In fact, I think of it as a bit of a “zone” to the 1.33 handle above. If we manage to break above the 1.33 handle, then I’m willing to listen to the buyers. Until then, I think this remains a “sell the rallies” situation, as we will more than likely go down to the neck structurally important support level found at the 1.30 level underneath.

As you can see on the chart, the 50 SMA has recently crossed below the 200 SMA, which is affectionately known as the “death cross.” (Sarcasm intended of course.) This is a longer-term sell signal, although quite frankly I think that it is only one of a multitude of tools you should be using. Structural support resistance tends to work out longer term, so that is my focus more than anything else. However, I am aware that there are several algorithmic traders out there that will be firing off sell orders. With this in mind, I look at rallies as opportunities to short the first signs of weakness, as I believe that the 1.30 level is far too structurally enticing for traders to give up on.

GBP/USD Video 21.06.18