FXEMPIRE
All

GBP/USD Price Forecast – British pound gaps to kick off week against greenback

The British pound gapped lower to kick off the week against the greenback, but by the time the Americans came on board had fill that gap it looks likely to continue to try to go towards the recent highs.
Christopher Lewis
GBP/USD daily chart, October 16, 2018

The British pound has gapped lower to kick off the week, but found buyers immediately, and has filled that gap by the time New York started trading. At this point, the uptrend is very much intact, and I think that we will make another attempt to reach towards the 1.3250 level above. If we can break that level, then it will send this market much higher. I believe that we are currently looking at the market trying to recover any losses, and I think we are also starting to see larger traders come in and trying to build a large position based upon a longer-term move. After all, once we get some certainty from the Brexit, I suspect that a lot of negativity will be worked away from the British pound, and we could see the eventual break out.

All one needs to do is look at the longer-term charts and realize how cheap we are at historically. Overall, I like the idea of the market going higher for the longer-term move and building a huge position. Obviously, you would need to do so very carefully right now, as there is a lot of volatility in headline risk out there. I think given enough time, we will see this market reach towards the 1.40 level, but it may take some time to get there. The 1.30 level right now looks very supportive, so I don’t think we will break down below there unless some type of absolute disaster scenario plays out.

GBP/USD Video 16.10.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US