GBP/USD Price Forecast November 7

The British pound has rallied quite nicely over the last several days in a strong bounce from the 1.27 handle. However, this pair continues to be driven on speculation about Brexit deals or a lack of, depending on who you follow on Twitter. Announcements on twitter continue to drive the market as Algo traders buy and sell based upon reading random headlines. That makes a spare extraordinarily dangerous and that’s why you should be looking at your charts like this one attached to the article.

GBP/USD Video 07.11.18

The reality is that even though the British pound is making a nice stand at the 1.27 level, there is a significant downtrend line that we need to be overcome for the market to go much higher. Beyond that, I see quite a bit of order flow just above 1.31 extending to the 1.33 handle, so it’s really not until we break above 1.33 that I think a longer-term outlook will have changed.

Don’t get me wrong, I do believe that there are a longer-term value hunters picking up the British pound on these dips but until we get some type of resolution or sign that there is an actual agreement between the United Kingdom and the European Union, the British pound will continue to suffer. Beyond that, in this pair we are matching it up against the central bank that we already know is going to raise interest rates several times, kicking off a perfect storm to start selling.