GBP/USD Price Forecast – British pound pulls back

The British pound traders sold off early on Tuesday as we await the UK parliament votes that will decide whether or not to accept the Teresa May deal, which is expected to be rejected. The question now is whether or not there will be any type of extension to the Brexit or not.
Christopher Lewis
GBP/USD daily chart, March 13, 2019

The British pound pulled back a bit during trading on Tuesday, as we are awaiting the UK parliamentary votes on Teresa May’s deal. It’s expected to miss, but at this point the question is whether or not there is going to be an extension to the Brexit. Obviously, if there is a “no deal Brexit”, we will have a shock to the system. However, it’s very unlikely to have that kind of outcome, because the UK will try to at the very least delay the situation. With this sell off, it’s very likely that we are going to see a bit of a reprieve.

GBP/USD Video 13.03.19

However, it’s very dangerous at the moment to put too much money into the British pound, but when looked at the longer-term attitude, it’s a matter of a break out, and a pullback to the downtrend line, then another bounce that formed a “higher high.” At this point, we have not formed a “lower low”, so we are still technically very bullish looking.

If they can get some type of cooperative agreement in the United Kingdom, then this market will probably shoot through the roof as the Federal Reserve on the other side of the equation is most certainly going to stay loose with its monetary policy. Ironically, the United Kingdom GDP figures came out at 0.5% earlier in the day, as opposed to the expected 0.2% showing that the United Kingdom is still very much alive.

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