GBP/USD Forecast November 2, 2016, Technical Analysis

The British pound went back and forth against the US Dollar during the day on Tuesday as we continue to simply grind sideways overall. At this point, I believe that the 1.20 level below is essentially a “floor” in this market, and if we break down below that level it would be very negative for the British pound. On the other hand, I do think that it’s much more likely that we rally for the short-term, but I would be looking for exhaustive candles above in order to start selling. At this point, I don’t have any real interest in buying the British pound, but I do recognize that sooner or later value hunters will return.