GBP/USD Price Forecast – British Pound Pulls Back Against The Greenback

The British pound pulled back during the Thursday trading session against the greenback, as the market may have gotten a bit ahead of itself during the Wednesday session.
Christopher Lewis
GBP/USD Price Forecast - British Pound Pulls Back Against The Greenback

The British pound has pulled back slightly against the greenback during the trading session on Thursday, as we continue to see a lot of back and forth in this pair. That being said, the market has recently found plenty of support on the uptrend line marked clearly upon the chart, and of course the 50 day EMA. More than likely, there will be a pullback, but the pullback should be thought of as a value proposition more than anything else. To the upside, I believe that this market is going to go looking towards 1.35 level but there are a lot of concerns that the Bank of England may end up cutting interest rates at the end of the month.

GBP/USD  Video 24.01.20

Having said that, employment figures certainly shows signs of strength in the United Kingdom that weren’t thought to be there, and that of course has traders questioning whether or not this is actually going to happen. All things being equal, I like the idea of looking for value in this pair, as it has worked out quite nicely over the last several months. Longer-term, this should be thought of as a pair that has an upward tilt to it, and that pullback should be buying opportunities. Nonetheless, it is not going to be easy to send this pair straight up in the air, so therefore it is going to be a significant fight every time we tried to get going. If we were to turn around a break down below the uptrend line though, that would of course be a very negative sign, perhaps sending the market down to the 200 day EMA.

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