GBP/USD Price Forecast – British pound continues to be sluggish

The British pound went back and forth during the trading session on Thursday, as we continue to dance around the 1.25 handle. Ultimately, this is a market that is dealing with the Brexit, and that of course is going to continue to be a major issue. At this point in time it’s very likely that the market will continue to suffer at the hands of the Brexit and the occasional headline. Even though we have the Federal Reserve likely to cut interest rates, at the end of the day it doesn’t really matter because we know that the British are going to be struggling with this nonsense for quite some time.

GBP/USD Video 26.07.19

We are in a massive downtrend and it’s likely that all we need is some type of catalyst to continue that massive move lower. Yes, the Federal Reserve is going to cut rates but that’s like it to be enough to make the British pound suddenly attracted to traders out there. Ultimately, this is a market that will continue to be noisy and negative. I think we are probably going to go looking towards the 1.2250 level next, recognizing the 1.26 level above as significant resistance. If we were to break above that level, it would be bullish but I think there’s even more resistance above at the 1.2750 level. All things being equal I think most participants are looking to find signs of exhaustion that they can start selling again.