GBP/USD Price Forecast – British pound pressing resistance

The British pound has been very noisy during the last couple of days, with both Monday and Tuesday featuring a lot of back and forth choppiness. With that being the case, we need to look at the longer-term charts to glean some information as to where we could go. Needless to say, the Brexit headlines and nonsense that continues going on into the future is not going to help the situation, and it appears that we are looking at a situation where we continue to buy the dips but are struggling to break out above.

GBP/USD Video 27.03.19

The 1.34 level is the top of a major resistance area that I think starts at the 1.3350 level. Ultimately, this is an area that’s going to take a lot of inertia to break above, but I do think that’s exactly what we been trying to do. Once we get above there it opens the door to the 1.35 handle, and then possibly even higher levels after that. The question now is whether or not the British pound has bottomed? Which I think it has longer-term.

To the downside I still see the 1.30 level as being crucial, so it should offer plenty of buying pressure. With that, I would be a buyer down there on that dip as well. I think at this point we are simply killing time and waiting for an excuse to rally to the upside. As soon as we get it, this market’s going to take off as it will confirm a major trend change on longer-term charts.

Please let us know what you think in the comments below