GBP/USD Price Forecast – British pound trying to find legs again

The British pound fell during the trading session on Thursday as per usual but has bounced slightly as we approached the 1.26 level. It’s difficult to imagine that this market is ready to turn around though, especially with the clown show going on in Great Britain.
Christopher Lewis
GBP/USD daily chart, May 24, 2019

The British pound has drifted a bit lower during the trading session on Thursday yet again, and quite frankly this will probably continue to be the overall attitude of this market until Theresa May leaves. While a lot of people blame the idea of harder “pro-Brexit” PM coming in and causing trouble, quite frankly the market needs certainty and the absolute mess that the Prime Minister has made of this entire situation only makes things worse.

GBP/USD Video 24.05.19

The 1.25 level underneath continues to be an issue, which should offer a significant amount of support. At that point I might be a bit more convinced to start buying, but a break down below there could be somewhat catastrophic for the British pound, and therefore it’s likely that we will continue to see further selling pressure on a daily time frame. Looking at the chart, I think that we are more than likely going to hold, at least in the short term simply because we are oversold. However, there is the alternate scenario that something actually happens in London that’s good for the British pound, and the signal to start buying would be a break above the inverted hammer that has the top of it at the 1.28 level. If we break that, it would be a significant turn of events. In the meantime, I expect a bit of a drift lower, and it’s very unlikely that anything is going to change as long as the same clouds are in charge.

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