GBP/USD Price Forecast – British pound fails again at resistance

The British pound try to rally a bit during the trading session on Friday, reaching towards the 1.27 handle, an area that has previously been support, and has been massive resistance. Ultimately, the fact that we are forming a candlestick that looks a bit like a shooting star tells me that although we are running out of momentum in general, it’s likely that we will roll over and continue to go with the longer-term trend. Based upon the descending triangle that we had been in it’s likely that we will try to go down to the 1.22 handle, as measured by classic technical analysis.

GBP/USD Video 24.12.18

If we do break above the 1.27 handle, it’s not until we clear the 1.28 level that I would be interested in buying. That would be a break of the 50 day EMA, which is a bullish sign, but I think it’s probably a short-term buying opportunity at best. It’s not until we break above the 200 day EMA that I think we can hang onto a larger move. Overall, I think it’s only a matter of time before we get some type of headline that will push the British pound lower, as fears of the Brexit should continue to be a major issue. Beyond that, even though the Federal Reserve was a bit more dovish than originally thought of during the week, it’s obvious that we are now starting to focus on the British pound again. It is holiday season though, so is very unlikely that we see some type of major move in the next few days. However, if we do it’s probably going to be to the downside.