GBP/USD Price Forecast – British Pound Building Support Against Greenback

The British pound has fallen initially during the trading session on Tuesday but have also turned around to show signs of support again. That being the case, you should pay attention to the 50 day EMA which is looking very likely to offer interest by traders.
Christopher Lewis
GBP/USD Price Forecast - British Pound Building Support Against Greenback
Pound currency background

The British pound has gone back and forth during the trading session on Tuesday, as we continue to see a lot of interest around the 50 day EMA. Furthermore, we are dancing around the 1.30 level, so it looks very likely that this level will continue to attract buying pressure. We are sitting at the 50 day EMA, and that suggests that we are going to eventually find enough buying pressure to turn this market to the upside. We are sitting on top of the previous bullish flag, so that of course is an area that should continue to cause support in general.

GBP/USD Video 15.01.20

If we can break above the gap from the Monday session, it’s likely that the market will turn around and go to the upside. At this point, it should send the market quite a bit higher, perhaps reaching towards the 1.35 level given enough time. Having said that though, it doesn’t mean that it will be easy to accomplish, just that it is the longer-term target. Ultimately, I do believe in buying dips as they offer plenty of value, but I also recognize that the biggest component to making money here is going to be using a lot of patience. I would build up positions with very little bits and pieces, understanding that it’s more or less a “core position.” I have no interest in trying to short this pair, at least as long as we can stay above the 1.28 handle. We will continue to have a lot of headline risks, but in the end it does look bullish.

Please let us know what you think in the comments below

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.