GBP/USD weekly Price Forecast – British pound fails at downtrend line

The British pound initially tried to rally during the week but has failed again at a major downtrend line. Because of this, it’s obvious to me that the British pound is going to continue to suffer at the hands of Brexit headlines, and of course this pair is especially sensitive to risk appetite, so it makes sense that we would see sellers come in and pressure the market place. I think that the 1.27 level is the bottom of a major descending triangle, and if we can break down below there, look out below. I think at that point the market would probably measure a move down to the 1.22 handle.

GBP/USD Video 12.11.18

That’s an area that is massive support, so it would make quite a bit of sense to see a bounce from there. At this point, I think that the market continues to be very erratic, and it makes sense that we continue to drift lower. Overall, I think that the market will reach towards the lower levels due to the fact that there are so many problems involving the Brexit, and of course the Federal Reserve continues to raise interest rates going forward, driving money towards the greenback anyway. I think it’s going to take a lot of momentum to break down, so it will probably take several attempts quite frankly. Selling the rallies continues to be the way forward from what I can see at this point. However, if we turned around and broke above the 1.33 handle, then I’d be a buyer.