GBP/USD Price Forecast – British Pound Rallies Towards Resistance Again

The bridge pound has rallied a bit during the trading session on Thursday, reaching towards the 1.30 level. This is an area that of course attracts a lot of attention, as it is a large, round, psychologically significant figure.
Christopher Lewis
GBP/USD daily chart, November 01, 2019

The British pound has rallied a bit during the trading session on Thursday, showing signs of strength yet again. The one .30 level above is the most recent high, and it is also an area where we have seen a lot of previous action, as it had been previous support. At this point, the market should continue to be very noisy, but it looks as if we are trying to make some type of statement based upon the Brexit being likely accompanied by a deal instead of crashing out. Breaking above the will .30 level could open up the door to the 1.33 handle above.

GBP/USD Video 01.11.19

Underneath, the 200 day EMA sits near the 1.27 level, which could cause a bit of support. Ultimately, the market also has support at the 1.25 level underneath, which is an area where we have seen a lot of structural back-and-forth. Ultimately, buying on dips continues to work with the British pound and the fact that the jobs number comes out on Friday could also provide a bit more momentum in one way or the other involving the greenback. This could be a bit of a “perfect storm” if we get some type of good news coming out of Brexit which can happen at any given moment due to Twitter driving algorithms back and forth. Either way, this is a market that has seen an impulsive move higher and it certainly looks as if we will continue to go much higher over the longer term.

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