GBP/USD Price Forecast – British Pound Continues to See Resistance

The British pound initially tried to rally during the trading session on Tuesday but has given back the early gains as we continue to see resistance above the 1.3350 level. At this point in time, we are still waiting to see what happens with Brexit, and quite frankly anytime there is a headline out there it can throw this market around. Because of this, it is very difficult to trade this market and a lot of people I know have simply stepped away from the British pound altogether. After all, while it is volatile, it is very unpredictable and that is a dangerous combination.

GBP/USD Video 25.11.20

Nonetheless, we are getting a bit overdone at this point and it certainly looks as if it would not take much in the way of bad news to get people selling again. This is not something that you can prepare for other than to have tight stops. Ultimately, this is a market that continues to be very noisy and affected by the latest rumor or tweet, so you need to be small with your position. I do think that we eventually get a pullback that we can take advantage of for a longer-term move, but at this point in time it is going to be a bit difficult to trade the market.

I believe that the 50 day EMA underneath would be a brilliant place to find value, assuming that we even get an opportunity to buy it down there. After all, we get some type of an agreement between the EU and the UK, this pair will almost certainly go directly to the 1.35 handle and beyond.

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