GBP/USD Price Forecast – British Pound Breaks Down

The British pound has fallen a bit during the trading session on Tuesday, breaking down below the bottom of the inverted hammer from the previous session. At this point, the market looks as if it is going to try to reach towards 1.20 level underneath, but I think that the market will find plenty of psychological support in that area. Whether or not we can break through there might be a different question, but I would anticipate that there would be some type of effort to support the market at that level.

GBP/USD Video 18.03.20

To the upside, I believe the top of the inverted hammer, which is at the 1.24 level, should be significantly resistive. At this point, there is also a lot of uncertainty out there so that tends to favor the US dollar in general. Having said that, the market has gotten a bit ahead of itself to the downside so a relief rally wouldn’t necessarily be out of the realm of possibility. With that, I’m not willing to buy any bounce but I am more than willing to fade it when it happens. The British pound will continue to suffer due to poor economic figures coming out the United Kingdom as well, and a massive influx of money into the US treasury markets, which of course drives up the demand for the greenback. If the market was to break down below the 1.20 level, then it could open up the door to the 1.18 level given enough time. Ultimately, this market should continue to see bearish attitude.