GBP/USD Price Forecast – British pound breaks out

The British pound initially pulled back during trading on Thursday, but then shot through the 50 day EMA to the upside. At this point, the market has broken above a recent high, and at this point that is a bullish sign. However, there is a lot of resistance near the 1.25 handle and therefore you should probably play quite a bit of attention for signs of exhaustion. That of course is the signal that the overall downtrend would continue, and even though Parliament has forced the “no deal Brexit” card, the reality is that there are still plenty of problems out there just waiting to peak their head up.

GBP/USD Video 06.09.19

At this point, I’m simply going to look for some time where we calm down, and then show a long wick to the upside. I will probably look towards short-term charts for that signal. Even though this has been a very impressive three days and the US dollar has been getting hammered against a lot of different currencies, the reality is not that much has changed, at least from a substantial point of view. With that, I am looking for opportunities to take advantage of an overbought condition as the US dollar is still Can, and with the bond markets out there acting the way they are, it’s only a matter time before people start buying the US dollar again. Ultimately, traders will continue to look for value in the greenback, and we are starting to see that turn up in the market.

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