Advertisement
Singapore markets close in 1 hour 3 minutes

  • Straits Times Index

    3,278.06
    -9.69 (-0.29%)
     

  • Nikkei

    37,934.76
    +306.28 (+0.81%)
     

  • Hang Seng

    17,658.99
    +374.45 (+2.17%)
     

  • FTSE 100

    8,123.14
    +44.28 (+0.55%)
     

  • Bitcoin USD

    64,296.59
    +255.53 (+0.40%)
     

  • CMC Crypto 200

    1,387.53
    -9.01 (-0.64%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • Dow

    38,085.80
    -375.12 (-0.98%)
     

  • Nasdaq

    15,611.76
    -100.99 (-0.64%)
     

  • Gold

    2,357.50
    +15.00 (+0.64%)
     

  • Crude Oil

    84.03
    +0.46 (+0.55%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • FTSE Bursa Malaysia

    1,573.80
    +4.55 (+0.29%)
     

  • Jakarta Composite Index

    7,073.89
    -81.40 (-1.14%)
     

  • PSE Index

    6,628.75
    +53.87 (+0.82%)
     

GBP/USD Price Forecast – British pound turns around and US session

Christopher Lewis
Updated
The British pound initially sold off as did most of the risk related currencies, but then turned around as the Americans came on board mainly due to structural support, and perhaps a little bit of help from turkey of all places.

The British pound has turned around after initially falling during the day on Monday. The market was of course very concerned about the entire turkey situation, but also we have to worry about the Brexit when it comes to this pair. With the Turkish lira crash in the way it had, inputted enormous amount of upward pressure on the US dollar overall, which of course was felt in this pair. However, the 1.2750 level has held as support, and now we may get a bit of a bounce. Nonetheless, I believe that the market will probably eventually find sellers, perhaps near the 1.2825 handle. A break above that level could send this market much higher.

I recognize that the 1.2750 level has served as a short-term bottom, and structurally on the longer-term charts it has also served a similar function. I think that we may be due for a bounce, but it’s not reason enough to start putting money to work from what I see. Ultimately, this is a market that need some type of good news involving the Brexit more than anything else. Most of the positivity that we have seen in the market during the session on Monday was peripheral at best. Meaning that it wouldn’t take much to spook the market back down to the downside. If we break down to a fresh, new low that I think it makes sense that we probably go hunting for the 1.25 handle after that. I believe the rally will be short-lived if it evolves at all.

GBP/USD Video 14.08.18

This article was originally posted on FX Empire

More From FXEMPIRE: