GBP/USD Price Forecast – British pound pulls back

The British pound fell during the trading session on Friday but found plenty of support near the 1.32 level to turn around and show signs of life again. With that being the case, the market looks very likely to continue to find buyers on dips, as we are now looking at a delayed Brexit. That should be good for the British pound in the short term, but the longer-term situation of course will be more drama and nonsense headlines pushing the currency pair around. With that in mind, understand that we are looking at a scenario that continues to be very noisy. It is because of this that I use very small positions and pick up value as it appears.

GBP/USD Video 18.03.19

If we do break down, I believe the 1.30 level underneath will be massive support, and it’s very unlikely that we will break down below that area. If we did, then we need to “reset” the general situation and try to figure out what to do next. Overall, this is a market that continues to be very erratic and difficult, but it looks as if we are trying to find our footing for a longer-term shot to the upside. If we can break above the 1.3350 level, then we could go to the 1.35 handle after that. At this point, I believe that the British pound has essentially bottomed for the longer-term, so we will have to see whether or not we can get things going. Momentum is going to be crucial, so take your time and build slowly.

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