GBP/USD Price Forecast – British pound continues to grind higher on Friday

The British pound rallied a bit during the trading session on Friday, reaching towards the top of the shooting star from the Thursday session. Ultimately, there is a good signal to go long if we can break above the top of it. If we do, that would show a lot of sellers being trapped in the market and we could go higher. Ultimately, if we turn around and break down below the shooting star from the Thursday session, then the market probably reaches towards the lows again. Breaking below there opens up the door to the 1.2250 level.

GBP/USD Video 15.07.19

The biggest problem with rallying from here is that it’s only a matter time before the Brexit headlines get involved and start pushing this market lower. The 50 day EMA is currently near the 1.27 level, an area that is structurally resistive as well. What I find interesting is that the Federal Reserve is looking to cut interest rates, but the British pound is still a bit sluggish. This tells me that not all is well with the Pound, but again, if we can break above the top of the shooting star, then the market could go higher.

We are in the longer-term downtrend, so it’s easier to short this market at signs of exhaustion, but at this point we have a lot of work to do to make a larger break one way or another. This is going to be an interesting market to trade over the next several months, because eventually we should get some type of resolution towards the end of the summer.

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