GBP/USD Price Forecast – British pound finds a reprieve on FridayThe British pound fell initially during trading on Friday but has seen a significant amount of buying pressure underneath as the EU offered the United Kingdom a bit of an extension.
The British pound initially fell during trading on Friday but found buyers underneath the turn things back around and reach towards the top of the previous candle stick. Overall it looks as if the buyers are willing to step in and pick up value still, as we have bounced hard from the psychologically and important 1.30 level. That is an area that coincides nicely with the 61.8% Fibonacci retracement level, so it’s very difficult to imagine that we are going to break down through there very easily.
GBP/USD Video 25.03.19
Looking at this chart, it’s easy to see that there is a significant amount of resistance above as well, so I don’t necessarily think we are ready to go ripping to the upside, as we would need some type of resolution to the Brexit situation that we find ourselves in right now. In general, it’s very likely that what we are about to see is a lot of consolidation between the 1.30 level on the bottom, and the 1.3350 level on the top. However, I think that eventually we do break out to the upside as we have broken a major downtrend line recently, the first sign of an overall trend change.
As soon as we get some type of resolution and clarity, it’s very likely the British pound will certify a lot of buyers as it is historically “cheap.” Beyond that, we have a Federal Reserve that is looking to kill off the US dollar, so it’s likely that we will have a bit of a natural bid here.
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