GBP/USD Price Forecast – British pound continues to bounce around

The British pound has initially fallen during the US dollar during the trading session on Friday but then turned around to reach towards the 1.22 handle by the time the Americans started. This is a market that continues to undulate around the 1.2250 level, and therefore I think you should look at that as a magnet for price, at least in the short term. That being said, the 50 day EMA above offers resistance, and it’s very likely that we are going to continue to see traders jump in and push this market lower if we get anywhere near it. At this point, I think that the market will eventually roll over, especially considering that we are almost undoubtedly going to get a “no deal Brexit.”

GBP/USD Video 02.09.19

Keep in mind that the US dollar is a bit of a safety currency, and of course we have the US Treasury markets which have been very strong as of late. I think ultimately we are going to see a scenario where we rollover and go back towards the lows. I believe that the 1.20 USD level is going to attract a lot of attention, not only because it was the recent low, but the fact that it is a large, round, psychologically significant figure. I do believe that we are going to go down to the 100% Fibonacci retracement level now that we are far below the 61.8% Fibonacci retracement level, which is at roughly 1.16 USD.

Please let us know what you think in the comments below