GBP/USD Price Forecast – British pound continues to fight

The British pound continues to fight during the trading session on Wednesday, as the 50 day EMA has offered support. As we are approaching the 200 day EMA, if we can get back above it, that would be a very bullish sign indeed.
Christopher Lewis
GBP/USD daily chart, February 07, 2019

The British pound pulled back slightly during the trading session on Wednesday but found enough support at the 50 day EMA to turn around and form a supportive looking candle stick. The 200 day EMA is just above the downtrend line, and if we can break above that moving average, then the market could continue to go higher, perhaps reaching towards the 1.32 level, perhaps even the 1.33 level after that. Remember, the British pound has been thrown around by a lot of headlines dealing with the Brexit, and of course a lot of the nonsense coming out of politicians.

GBP/USD Video 07.02.19

Looking at this chart, I think that we are starting to change the trend but we’ve got a way to go. The candle stick that I have highlighted is very interesting to me, and I think it’s only a matter time before we see this market show signs of life again. If we break down below the bottom of the candle stick, then I think we could go to the 1.27 level after that. That is an area that has been massive support at least a couple of times, so I don’t have any interest in shorting this market if we get to that area, quite the opposite: I would look at it as a potential value area that people will be more than willing to get involved in. I believe that the softening Federal Reserve will continue to push this market to the upside and as soon as we get some type of Brexit positivity, that should be the final catalyst to higher levels.

Please let us know what you think in the comments below

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