GBP/USD Forecast July 20, 2017, Technical Analysis

The GBP/USD pair fell significantly during the day on Thursday, slicing through the 1.30 level. This is a very negative sign, and we have even tested the 1.30 level for resistive action and have found it on the hour timeframe. Ultimately, it’s likely that we will continue to see some negativity in this market, and it’s not until we would break above the 1.3050 level that I would feel comfortable buying. It appears that we are starting to see the market fall apart again, and perhaps reach back into the previous consolidation area. The British pound continues to be very difficult to trade, as we have seen so many different reactions. Most recently, we had the CPI numbers disappoint, and it looks as if that is putting a serious anchor around the neck of the British pound.
The 1.30 question
I believe that the 1.30 level is essentially the most important level on the chart, so depending on which side we are on from that level, is the direction I would be trading. I think that the market should continue to see markets trade with volatility, but ultimately, I believe that the 1.30 level will be the deciding factor for the next several handles. I suspect that most of you that have tried to trade the British pound recently have lost money, because quite frankly I can’t seem to make up its mind. Don’t worry, most of my trading friends are in the same boat.