GBP/USD Price Forecast – British Pound Pulls Back on Holiday Trading

The British pound initially tried to rally during the trading session on Thursday but gave back the gains as we may have gotten a little bit ahead of ourselves. Furthermore, traders are becoming a bit more cautious due to the fact that the Brexit negotiations seem to be souring a bit. Because of this, the market probably has a bit of a pullback ahead of it, but quite frankly what we have seen over the last several months is that every time the British pound looks like it is down and out, people are willing to pick up and bind the British pound. The 1.35 level above is a major resistance barrier, but I do think that it is a target if we go to the upside.

GBP/USD Video 27.11.20

All things being equal, the 50 day EMA underneath would be a major support level, as we are in a long-term uptrend. I would love to see a move down there so that I can start picking it up again, as sooner or later there should be some type of Brexit agreement, but in the meantime it looks like the politicians are still willing to play games in the media. That I believe is the biggest anchor around the neck of this market, perhaps right behind the idea of the fact that it is overbought anyway. With this being the case, I do like the idea of finding value so on simply going to sit on the sidelines and wait for some type of supportive candlestick on the daily chart to get long yet again.

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