GBP/USD Price Forecast November 6

The British pound has struggled a bit during the first day of the week, as the 1.30 level has offered psychological resistance, and it appears that the market will continue to be skittish overall. After all, there are a lot of conflicting headlines out there when it comes to the Brexit, and that will continue to be the main driver of this pair. Longer-term, I think that we are probably going to retest some of the lows from here, and at this point I think the market probably has more likelihood to drift lower than anything else. I see a lot of noise between here and the 1.3250 level, so therefore even if we do rally it’s going to be very choppy to say the least.

GBP/USD Video 06.11.18

At this point, the British pound continues to be very difficult to deal with on a longer-term chart, unless you can either hold on through a lot of volatility or trade a small enough position that it doesn’t bother your account. After all, it seems that it only takes a headline to move the market 50 points. At this point, I suspect that the 1.2700 level underneath should be rather supportive, and I would be surprised to break down below there. If we did, that of course would be extraordinarily negative for the British pound, and we could see the market return to the 1.25 level. However, I think something extraordinarily ugly would have to happen for that to be the case.