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GBP/USD Price Forecast – British pound continues to grind back and forth

By:
Christopher Lewis
Updated: Apr 2, 2019, 15:37 UTC

The British pound fell slightly during the trading session on Tuesday, as we continue to see a lot of drama around the Brexit. The UK parliament has failed to come to any type of agreement yet again, so therefore we see a lot of choppiness.

GBP/USD daily chart, April 03, 2019

The British pound fell during Tuesday session, continuing the selling pressure that we had seen late during the day on Monday. We continue to see a lot of interest at the 1.30 level, which is an area that is also the 61.8% Fibonacci retracement level from the break out that we had seen. At this point, it does look like the 1.30 level continues to be important, as buyers continue to come back in there. At this juncture, I believe that we are still simply consolidating between the 1.30 level and the 1.3350 level above.

GBP/USD Video 03.04.19

If we break down below the 1.30 level, then we could go looking towards the 1.28 level in order to “reset” and trying to build up momentum to the upside. We have broken out, so I do believe that it’s only a matter of time before the upward momentum continues, but obviously we need some type of catalyst to take off to the upside for any significance. Although a bit counterintuitive, it does look as if the British pound is relatively resilient, so we should continue to trade it as such.

To the upside, if we can break above the 1.3350 level then we open the door to the 1.35 handle above. Overall, this is a market that continues to find plenty of buyers, regardless of what many traders out there think. This is a matter of paying attention to what a market does, and not what people say.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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