GBP/USD Price Forecast – British pound pulls back

The British pound pulled back a bit during the trading session on Tuesday, as we continue to see the overbought condition correct itself. As you can see on the chart, I have an ellipse drawn, and I believe that’s an area that I think will continue to offer a bit of support, simply because of order flow that I can see at that region. I suspect it runs all the way down to the 1.30 level. To the upside, there’s obviously some resistance, but I do think that eventually we break above it. This will be especially true if we get some type of Brexit deal or delay in that move.

GBP/USD Video 06.03.19

In fact, I believe that the market is essentially counting on it so the real danger of the sudden shock move is probably to the downside. At this point though, this looks a whole lot like a market that is trying to change its overall trend, so I would expect a lot of choppiness and noise. In fact, this is probably the most noisy pair that I’m looking at right now, but then again that’s how we make our money: volatility.

I believe that the downtrend is over, because we have priced in Armageddon when it comes to the United Kingdom. It’s not unless we get some type of “no deal Brexit” that I think this market continues to find plenty of buyers.

Please let us know what you think in the comments below