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GBP/USD Price Forecast – British Pound Continues To Struggle Against Greenback

The British pound broke down a bit during the trading session on Thursday, slicing through the 1.29 level again. The market continues to struggle against the greenback in general, but it is approaching support.
Christopher Lewis
GBP/USD

The British pound broke down a bit during the trading session on the on Thursday to slice below the 1.29 level. However, it looks as if the market will find some support at the 1.28 level, and a bounce from here makes quite a bit of sense. I think we are in the midst of some type of bottoming process, so I’m looking for an opportunity to go long. I don’t have it right now, as the greenback continues to strengthen dramatically against most currencies in the world. However, if the market breaks back above the 1.30 level it would probably suggests that the market will go looking towards 1.32 handle.

GBP/USD Video 21.02.20

Ultimately, if the market does break down below the 1.28 level it’s likely that it will drop another 100 pips to reach down towards the 1.27 handle. Somewhere around that area, the 200 day EMA is hanging about as well, so it’s something worth paying attention to. Ultimately, the market is very likely to continue to see a lot of back and forth and choppy behavior, because quite frankly the British pound represents an economy that is now trying to figure out where it goes next. The British are negotiating with the European Union, and that of course will cause quite a bit of back-and-forth with the British pound because of the uncertainty. Having said that, it is looking like a market that is trying to offer some type of value in this area, but you will need to be very cautious, so therefore position sizing will be crucial.

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