GBP/USD Price Forecast – British Pound Pulls BackThe British pound pulled back a bit during the trading session on Friday, but quite frankly we are well within the tolerances of the overall consolidation, so even if we do drift lower from here, we still see plenty of support underneath.
The British pound has pulled back a bit during the trading session on Friday, as we continue to see a lot of choppy behavior. That being the case, it’s likely that the market will continue to be difficult to trade from a longer-term perspective, but at this point I think that there is a relatively obvious range that the market is working with. That range is the 1.30 level on the top, while the 1.28 level on the bottom offer support. It is a larger bullish flag, and we also have the 50 day EMA getting ready to cross the 200 day EMA which is a longer-term “buy-and-hold” signal for some traders. Because of this, I do believe that eventually the British pound will break out, but we need to get through the specter of the UK elections first before people are comfortable enough holding onto it.
GBP/USD Video 25.11.19
Looking at the chart from a longer-term perspective, we are very low in value from historical standpoint. It is because of this that I believe eventually this market will break out and once it does it’ll be the beginning of a large multi-year rally. Until then though, it is going to continue to be very choppy and difficult, but that can be said about a lot of currency pairs at the moment as the currency market simply don’t seem to have anywhere to be. With this, we are simply killing time but that doesn’t mean you can’t play what looks to be a very obvious range in the market.
Please let us know what you think in the comments below