GBP/USD Price Forecast – British pound getting extended

The British pound pulled back slightly during the trading session on Thursday, as the 1.3333 level has offered resistance as anticipated. Ultimately, I do believe that we break out to the upside but it’s very likely that we have to pick up a bit of value hunters underneath. The 1.32 level underneath is supportive, but quite frankly even if we break down below that level I would love to see further pullbacks, because they understand that the British pound has broken out. At this point, I believe that the 1.30 level is essentially the “floor” at this point, and I would love to get an opportunity to pick up Sterling in that range.

GBP/USD Video 01.03.19

Market participants are starting to price in the idea of a delay in the Brexit, or more importantly that the British will certainly find some way to  sign a deal with the European Union. That’s bullish for the currency, and therefore you are starting to see it reflected in the chart. However, it’s only a matter of time before some headline crosses the wires are that gets the machines the start selling off drastically. That will be yet another bicycle as soon as we can stabilize. As for buying on a break out to the upside, it can be done but it is much less favorable as paying up for an asset is always one of the worst things you can do, and at best means that you will be sweating it out for a while.

Please let us know what you think in the comments below