GBP/USD Price Forecast – British Pound Pulls Back Toward Support AgainThe British pound pulled back significantly during the trading session on Wednesday, reaching down towards the support level near the 1.29 level. At this point, the market is likely to continue to see buyers in this general vicinity, unless of course there is some negative news coming out of Great Britain itself.
The British pound continues to grind back and forth, but it does seem to be in an area where we might see a bit of support in the short term, and it’s possible that we simply grind away as it looks like the market is at least from a technical analysis standpoint trying to build a bit of a base. That being said, the fundamentals in Great Britain are better than anticipated, but not necessarily strong. A range bound system in this general vicinity may be worth taking, noticing that the 1.30 level above offers significant selling pressure.
GBP/USD Video 27.02.20
The 200 day EMA is down at the 1.27 handle, an area that a lot of traders will pay attention to. Ultimately, this is a marketplace that tends to favor the British pound longer-term, and we are at historically cheap levels. That being said though, we are obviously in very unconventional times. With that being the case, it’s very likely that we are looking at a scenario that will continue to be very choppy and difficult to trade to say the least. I do like the idea of buying above the 1.30 level though, because that could kick off more of a “obvious basing pattern” that other traders may try to jump on. Expect a lot of noise, but you should also expect that the resiliency can be used in your favor if you are patient enough and of course pay attention to position size.