GBP/USD Price Forecast – British pound continues to grind

The British pound fell again during the trading session on Thursday, as we are now testing the 50% Fibonacci retracement from the recent surge higher. I think at this point, we are continuing to see value hunters coming back into this market place, but the reality is that this is going to be a very difficult market to deal with going forward as the headlines will continue to be manipulated by the various politicians trying to get in front of the cameras. Because of this, we will be held hostage to the occasional tweet or headline, but keep in mind that we are at technical levels that should be important in general. This is going to be very messy, but as I believe we are in the process of trying to change the longer-term trend, that should not be surprising.

GBP/USD Video 14.02.19

Looking at this chart, I think we should see buyers come in and start to pick up this market again in this area, but if they do not then the next support level is the 1.27 handle underneath which is the 61.8% Fibonacci retracement level. I think it’s only a matter of time before the buyers get involved, but quite frankly I suspect that you are probably going to be well served by cautiously entering the markets and not putting too much money to work in one shot. This is a market that will continue to be very noisy, but I do think that we are trying to complete the bottoming process.

Please let us know what you think in the comments below