FXEMPIRE
All

GBP/USD Price Forecast – British pound grinds lower on Friday

The British pound fell again during the trading session on Friday as we continue to see a bit of a “risk off” attitude. However, we are approaching a significant barrier just below that should continue to attract buyers.
Christopher Lewis
GBP/USD daily chart, October 02, 2018

The British pound broke down during the day on Friday, reaching towards the 1.3025 level at the time of writing. The 1.30 level underneath is psychologically important, and structurally important for that matter. There is also the previous downtrend line that has shown a proclivity to be important more than once, so I think as we drive down towards that area, there should be a typical “buy on the dips” attitude. At this point, it does look like the market is trying to reassert itself, so I think by the end of the day we should have much more of a clear picture. If we are above the 1.30 level, then we should start to see buyers come back in. Otherwise, if we break down below the 1.30 level on a daily close for Friday, that would be a very negative sign.

Overall, I believe that the selling pressure in the British pound is a bit overdone, so I think we are more than likely going to see the buyers jump in. After all, that has been the way forward for some time. That doesn’t mean that it’s going to be the easiest trade to take, and I certainly wouldn’t jump in with both feet. However, as the trade works out in your favor, assuming it does, then you could add going forward. I do believe that this is the typical volatility that we see after a major shift in attitude, so this should end up being a nice buying opportunity. Otherwise, things could get ugly.

GBP/USD Video 01.10.18

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