GBP/USD Price Forecast – British pound finding buyers

The British pound initially fell during trading on Friday but seems to be finding plenty of support near the 200 day EMA, and of course the previous downtrend line. At this point, the market looks very likely to continue to try to grind to the upside, perhaps reaching towards 1.33 level, and then beyond that to the 1.35 level. I believe that as long as we can stay above the 1.30 level, it’s likely that this market continues to find value hunters.

GBP/USD Video 04.02.19

The markets have recently made a major move to the upside, and that short-term pullback is starting to look a bit more like a pennant, or if nothing else a simple retest of previous resistance. I believe that we are heading close to a decision on the Brexit, and as soon as we get any type of clarity the British pound should continue to attract attention. Ultimately, I believe that the market will look back at this time frame as when we found the ability to change the trend. Because of what I have seen over the last couple of weeks, I am no longer interested in shorting the British pound but I am also fully aware of the fact that the occasional headline could stop out a position that I have on. It’s going to be a long and painful process, but I believe that the British pound has finally turned the corner longer-term.