GBP/USD Price Forecast – British pound looking for supportThe British pound has rallied a bit during the trading session on Tuesday, as we continue to see buyers right around the 1.27 handle. There is a thick band of support below, so it will be interesting to see if it can hold.
The British pound has gone back and forth during the trading session on Tuesday, giving back some of the gains though. It looks as if the 1.27 level is going to offer support, but obviously there’s a lot of resistance just above. The British pound is oversold, so don’t be surprised to see this market trying to bounce hard. However, there aren’t a lot of clear indications as to where the Brexit is going to go quite yet, and with 10 separate contenders to lead the Conservative Party in the United Kingdom, we still aren’t quite sure how this thing is going to shake out.
GBP/USD Video 12.06.19
That being said, I do see a 200 point range of support underneath and I think we are in the process of trying to bottom out when it comes to the British pound. That doesn’t mean that it’s going to be easy, and it certainly doesn’t mean that it’s going to be sudden. We are in the process of a miniature bottoming pattern, but that doesn’t mean we will revisit this level again. If you are a longer-term trader, then it might be worth trying to buy this market. Shorter-term traders will probably continue to look at a lot of back-and-forth and range bound trading decisions, with a lot of resistance just above. If we can break above the 1.28 level though, that could start to open up the door for a move towards the 1.30 level. Remember, the Federal Reserve has stepped away from its hawkish attitude, so that does give this market a little bit of a floor.
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