GBP/USD Price Forecast – British pound pulls back

The British pound of course has rallied quite significantly over the last couple of weeks, but during the day on Thursday pulled back slightly to test what could be potential support. There is the 200 day EMA, the previous downtrend line, and if we can stay above these two things, that should be very bullish and could send the British pound much higher. At this point, I believe that the market will continue to be very volatile, but as the chart looks right now I think we are looking towards the 1.3250 level. If we did break down below the 200 day EMA, then we could be looking at support at the 1.2850 level.

GBP/USD Video 25.01.19

Keep in mind that it looks like the Brexit is going to be delayed, and traitors are starting to price that in. On the other side of the Atlantic Ocean, we have the Federal Reserve which looks likely to be very dovish, or at the very least on a whole day and that of course will put a bit of bearish pressure on the US dollar. That sets up the British pound in a bit of a perfect storm at the moment, and therefore I do think that the buyers will continue to push higher. That’s not to say that it’s going to be easy, and most certainly the easiest money has already been made, but clearly the bias is to the upside in the near term, and I will be ignoring cell signals until further notice.