GBP/USD Price Forecast – British Pound Pulls Back Slightly On Monday

The British pound has pulled back slightly during the training session on Monday to show signs of life again, as the 1.30 level of course offers a significant amount of psychological resistance.
Christopher Lewis
GBP/USD daily chart, November 05, 2019

The British pound continues to go back and forth during the trading session on Monday, as we see a lot of noise just below the 1.30 level. That large, round, psychologically significant figure of course attracts a lot of attention, and therefore it’s not a huge surprise to see that the market may struggle in that area. However, if we are to close above the 1.30 level on a daily chart, that would be a good sign that we are ready to go much higher. At this point, pullbacks to the 200 day EMA should be buying opportunities as the market will of course pay quite a bit of attention to that indicator as well.

GBP/USD Video 05.11.19

If the market was to break down below the 200 day EMA, then it will start looking towards the 1.25 level underneath. At that point, there is a lot of structural noise and of course the large, round, psychologically significant figure comes into play, just as it does at the 1.30 level. Looking at this chart though, it certainly has been very bullish, and it looks likely that traders will continue to pay attention to the overall trend. The British election nonsense of course will take front and center, but ultimately the market is likely going to continue grinding higher given enough time, we simply need the catalyst at this point. With a softening Federal Reserve, and perhaps some good news coming out the United Kingdom, that could be what happens next. However, in the short term it looks like we will probably chop around.

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