GBP/USD Price Forecast – British pound bounces slightly into the weekend

The British pound has bounced a slightly during the trading session on Friday, as the 1.27 level has been so supportive. We are currently in a descending triangle, which of course is a major pattern. The market continues to be consolidating but obviously with a very negative attitude. If we can break down below the 1.27 level, then the measure to move from the triangle would be to send this market down to the 1.22 handle which is an area that has shown quite a bit of support in the past.

GBP/USD Video 19.11.18

The downtrend line of the triangle continues to be very negative, and the 200 day EMA is just above there as well, giving us a couple of different reasons to think that the sellers will continue to come back into this market. We have a headline risk of the Brexit of course, and at this point the most reliable trade that we have seen in the British pound is too short it every time the Algo traders jump on some random rumor. In fact, it’s not until we break above the 200 day EMA that I would be thinking about buying. I do believe that we will break down below the 1.27 level in the next several days, and when we do that should be another excellent selling opportunity. There are far too many reasons to think that the chaos is going to continue to get bullish now. Value hunters are certainly out there and about, but if we did turn things around you should have plenty of time to get involved.