GBP/USD Price Forecast – British pound rallies on Thursday

The British pound rallied significantly during the trading session on Thursday, reaching towards the psychologically and structurally important 1.25 handle. However, we have pulled back from there just a bit as I record this, so it makes sense that perhaps the downtrend continues.
Christopher Lewis
GBP/USD daily chart, July 19, 2019

The British pound rallied rather significantly during the trading session on Thursday but found a bit of resistance near the 1.25 handle, an area that is previous support and of course a large, round, psychologically significant figure. Ultimately, this is a market that continues to break down due to the idea of a “no Brexit deal” being very possible at this point. That being said, the Federal Reserve is looking to cut interest rates so that does apply a little bit of upward pressure here. Overall though, this is a market that should continue to be volatile, but negative more than anything else.

GBP/USD Video 19.07.19

At this point, now that we have cleanly broken through the 1.25 handle, it’s very likely that we go down to the 1.2250 level. After that, I think that the 1.20 level will be targeted, as it is a large come around, psychologically significant figure. I have no interest in buying this pair, at this point I see resistance at the 1.25 handle, the 1.26 handle, and then the 1.2750 level. Ultimately, this market is one that should be faded every time it shows signs of strength, and then followed by exhaustion. The 50 day EMA is racing lower and will attract more selling pressure once it gets down to the area we are at. We are in a downtrend, and there’s no reason to fight that anytime soon. With all of that being said, I have no interest in trying to outthink the market, I will simply follow what has been the case for some time.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.