The British pound has initially tried to rally during the trading session on Thursday but has rolled over towards the 1.30 level. That’s an area that should be rather supportive, and something that we should be paying attention to in general as it is supported from a larger consolidation area. All of that being said, you should also notice that the highs are getting lower and that of course is not a good look. This means that the British pound will more than likely eventually break down through that level and go looking for value underneath.
GBP/USD Video 19.04.19
A break to the upside probably finds resistance at the 1.3133 handle, which has been short-term resistance. However, we have much more resistance at the 1.3333 handle, which is the top of the longer-term consolidation overall. However, with a lack of headlines with the Brexit coming out, I suspect that we are more likely going to see a break down and reach towards the 1.27 level underneath which is massive support on longer-term charts. The descending triangle that is starting to show itself on the market charts also suggests that breakdown could be coming.
That being said, I’m not expecting any type of massive break down, rather I am expecting a general drift lower. This means that once we get the break down I don’t expect a big “flush”, but rather just slowly drifting lower as there is no catalyst to drive the British pound higher until we get some type of good news with the Brexit deal.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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