GBP/USD Price Forecast – British pound pulls back from major moving average

The British pound went back and forth during the day but eventually fell as the 200 day EMA has offered enough resistance to turn things lower. The downtrend line from the descending triangle has also had an influence on this market, so likely we are going to continue to drop from here a bit just as we had recently seen in the EUR/USD pair from its 200 day EMA. That being said, I do think that a lot of people are starting to think that the Brexit is going to be delayed, and that has been bullish for the British pound. However, the market looks very likely to be a bit disappointed occasionally from the headlines coming out, as the algorithmic traders continue to get thrown back and forth.

GBP/USD Video 21.01.19

That being said, if we can break above the 200 day EMA on a daily close, then I think the market would probably go closer to the 1.32 handle. That would of course take some momentum building, so in the short term I think we are probably going to be reaching towards the 1.2850 level, the bottom of the Thursday candle, either a pullback from major resistance, or an opportunity to build up more momentum. If we break down below the lows of the Thursday candle, then I think we will go all the way down to the 1.27 handle.