GBP/USD Price Forecast – British pound breaks through major support

The British pound has broken through the vital 1.30 level during the trading session on Thursday, showing signs of further weakness as retail sales came out much softer than anticipated. Impounding that with the drama surrounding Teresa May and the Brexit, it’s difficult to imagine that a lot of people are going to jump in and start by the British pound in the short term. I think that if we see resistance again at the 1.30 level on a rally, this pair will probably go much lower.

However, if we can turn things around and break above the 1.31 handle, that would be an extraordinarily bullish sign. This would almost certainly be accompanied by some type of good news coming out of the United Kingdom, which is vitally needed right now. I believe that it is more likely that we will continue to see negativity around this marketplace, although the US dollar is certainly overbought at this point. I believe you will get opportunities to short this pair at higher levels, but again, if we can break above the 1.31 handle we should continue to go much higher.

I’d say the only thing you can count on in this pair is that it is going to continue to be very noisy. However, it looks as if the sellers are in complete control at the moment.

GBP/USD Video 20.07.18

This article was originally posted on FX Empire

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