GBP/USD Price Forecast – British Pound Continues To Press Onward

The British pound has rallied a bit during the trading session on Monday, continuing to follow through from the massive move on Friday. That being said, it is running into a little bit of resistance, and therefore a slight pullback makes quite a bit of sense. The 50 day EMA underneath should continue to lift this market, as it is a major indicator that a lot of traders will follow. All things being equal, this is a market that continues to be one that you can buy on the dips, and I do plan on doing that going forward. However, with Wednesday being New Year’s Day, it’s very likely that we have a lot of traders simply sitting on the sidelines.

GBP/USD Video 31.12.19

Beyond that, you also have to pay attention to the greenback on the other side of the equation, which of course will be influenced by the jobs number coming out on the 10^th instead of the first Friday, which means that we could have a relatively light amount of influence on the greenback between now and then. Nonetheless though, the technical analysis is bullish so therefore I will be looking for opportunities to pick up the British pound “on the cheap”, and therefore look at this as a value play. I have no interest in shorting, unless of course we break down below the bottom of the flag which is closer to the 1.28 handle. If we do break down below there then I think the British pound goes to the 1.25 handle, but it’s much more likely that this market goes looking towards 1.35 handle above.

Please let us know what you think in the comments below