Yahoo Finance GBP/USD Price Forecast – British pound falls hard during trade spat
The British pound has broken down significantly during the trading session on Tuesday, as the United States as added more trade tariffs against the Chinese. Obviously, the Chinese will retaliate, and this is what the market is contemplating. I think that the breaking of 1.32 is a significant signal, that the pair is going to continue to go lower, specifically the 1.30 level. By doing so, this will test the next major structural support level, and I think that breaking below the 1.30 level would be very destructive for the British pound to say the least.
I believe that this probably has less to do with the British pound and more to do with the US dollar, as it continues to strengthen against almost everything. That being said, I believe that the market will continue to find plenty of reasons to sell rallies, so I’m looking for signs of exhaustion to take advantage of. I believe that this market will continue to be a “sell the rallies” type of situation going forward, until we get some type of calming down of trade tensions between the worlds too big trading partners. Beyond that, we also have concerns about the situation between the British and the Europeans splitting apart, so this could quite often cause issues in this market. By being patient, you should be able to take advantage of the bearish pressure with a little bit of diligence.
GBP/USD Video 20.06.18
This article was originally posted on FX Empire
