GBP/USD Weekly Price Forecast – British pound continues to sinkWhile the weekly candle is going to end up being positive for the British pound, all we have done as a community has pushed it towards the previous resistance. It has failed at the 1.27 handle, and as long as the stays underneath that level it’s likely that we will fulfill the measured move suggested by the descending triangle.
The British pound has continued to dwindle a bit, but at the end of the week we are forming a slightly positive candle. That doesn’t really matter though, because there is enough resistance at the 1.27 level to continue to push this market lower from what I see. Because of this, I think that the Brexit continues to be the main driver of this pair, and quite frankly fading rallies will continue to work. Based upon the descending triangle, we could go down to the dashed line that I have on the chart, which reaches all the way down to the 1.22 handle.
GBP/USD Video 24.12.18
This doesn’t mean that it has to happen in the next week or two, and in fact it may take quite some time to get there. However, it’s not hard to envision a situation where the British pound loses value due to some type of comment coming out of the United Kingdom, or perhaps even Brussels. I would not be interested in trying to buy the British pound anytime soon, at least not until we get a daily clearance above 1.28 at the very least, and quite frankly I would like the idea of some type of Brexit deal signed before that happens.
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As we enter this last week of the year, markets will be volatile, so keep that in mind. We could get sudden moves in one direction or the other but they won’t necessarily stick. This will be especially true if they happen with no headlines.