GBP/USD Price Forecast November 8

The British pound has gone back and forth during the trading session on Wednesday as the British pound continues to be very noisy. Perhaps this is in reaction to the elections, but I think the trend line holds true, and therefore I think the downtrend probably continues. The 1.27 level underneath is support, so I don’t think we break down below there. If we do break above the downtrend line, the market will probably go looking towards 1.33 handle next, which should be resistive. Look at this chart, I certainly think that it’s easier to short this market but expect a lot of volatility.

GBP/USD Video 08.11.18

Ultimately, I think the 1.30 level underneath could be slightly supportive, but if we break down below there then I think the market reaches towards the previously mentioned 1.27 level. It’s not until we break above the 1.33 level that I’m comfortable buying the British pound, because we simply cannot seem to get enough momentum to continue the upward march. Fading the rally has worked several times previously, so there’s no reason to think it will work now. I believe that we will eventually retest the 1.27 level, unless of course we get some type of clarity with the Brexit. However, keep in mind that there is going to be a lot of noise coming out of Twitter, which will make robots throw money around the market wildly. This is something we continue to see as traders try to game the system.