GBP/USD Price Forecast – British pound rallies towards resistance

The British pound spiked higher during trading on Friday, but then gave back the gains after the jobs number. However, it now looks as if we are trying to find some type of support where we took off from originally, so is very likely that we will turn around and try to rally again. The psychological significance of 1.30 may have been a bit too much, but longer-term charts have a significant downtrend line just above that level that of course has its effect on the market. If we can break above that level, this will probably become a “buy-and-hold” scenario. Obviously, we need some type of good news coming out of the Brexit to push the British pound higher as we have seen it spiked higher every time there is even the slightest hint of progress.

I would not be a seller of this pair anymore, as I think we are trying to turn around longer term. These moves are always very messy, and the fact that this is so news driven is going to make it even more so. I would be cautious about trade size though, as it certainly can get you into trouble if you are not careful. Start out slow, but by all means add if we can break out above the downtrend line just above. This is a marketplace that has shown a lot of resiliency lately, and I think it’s trying to tell you something. The buyers will eventually win this argument.

GBP/USD Video 10.09.18