GBP/USD Price Forecast – British pound continues to struggle

The British pound went back and forth during the bulk of the trading session on Tuesday, as the markets took a bit of a breather after the massive volatility that we have been going through. Every time this market rallies, it seems to find reasons to sell off, and the 200 day moving average above is sitting just above the downtrend line from the triangle, and I believe at this point it is only a matter of time before the sellers come in and push to the downside. I think that if the 1.27 level underneath gets broken to the downside, the market can probably reach down to the 1.22 handle after that. Ultimately, I believe that the market participants will continue to see reasons to sell this market, especially as the headlines about the Brexit simply aren’t that good.

GBP/USD Video 21.11.18

The reason I suggest the 1.22 handle as a target is not only has it been structurally important in the past, but it also is the measure to move from the descending triangle. However, if we were to turn around and rally above the 200 day EMA on a daily close, then I think that the market probably goes to the 1.35 handle after that. That obviously need some type of good news involving the Brexit, something that seems to be eluding us in this present trading environment. Beyond that, the US dollar of course has bullish pressure in the form of interest rate hikes.