GBP/USD Price Forecast – British Pound Drifting

The British pound has drifted a little bit lower during the trading session on Tuesday, testing the bottom of the hammer like candlestick that form for Monday. I suspect that this market is probably going to pull back a bit, as the 1.30 level has obviously attracted a lot of attention in the market is overbought.
Christopher Lewis
GBP/USD daily chart, October 23, 2019

The British pound has drifted a little bit lower during the trading session on Tuesday, testing the bottom of the candlestick from the Monday session. At this point, breaking below the bottom of the candlestick from the Monday session should send this market down towards the 200-day EMA, which is painted in black on the chart. This doesn’t necessarily suggest a trend change, just that we are over extended, and that of course is something that will correct itself occasionally.

GBP/USD Video 23.10.19

Keep in mind that the British pound of course will have to deal with a lot of Brexit noise, so at any moment we could get an impulsive move in one direction or the other. That being said, I anticipate that this market will continue to see a bit of hope enter as at the very least it could be said that Brexit is starting to at least look like it’s winding away towards the end. Once the markets finally get through the Brexit situation, then it’s very likely that traders will simply be able to focus on the British economy. That is probably still several months away, and now that the decisions seem to be pushed back, it’s likely that we will continue to see a bit of trepidation on both sides of the equation. Regardless though, I do like the idea of a pullback as we have gotten far ahead of ourselves recently.

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