Christopher Lewis
Add to Bookmarks
GBP/USD daily chart, March 12, 2019

The British pound has rallied significantly during the trading session on Monday, reaching towards 1.31 handle. This of course is a good sign, as the market had pulled back rather stringently during the previous week. We found the 61.8% Fibonacci retracement level supportive enough to turn things around, and it now looks as if we are ready to go looking towards the highs again. This is a market that has recently broken above a downtrend line, pulled back to test it, rallied again, and now looks like it’s going to rally to form a “higher low.” This is the very essence of an uptrend.

GBP/USD Video 12.03.19

As we go through the Brexit process, there will of course be headlines to be concerned about, but those pullbacks continue to be buying opportunities for those who are quick enough to take advantage of them. Overall, it looks as if the market continues to see pullbacks as value that can be taken advantage of, as the British pound is historically cheap currently. The Federal Reserve on the other side of the equation of course has stepped away from a hawkish stance, so it’s very likely that we will continue to see a “buy on the dips” mentality going forward.

Know where GBP/USD is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

There are some very serious votes coming over the next couple of days as to whether or not British Parliament is going to go along with Teresa May, but quite frankly I believe that unless it’s obvious that we are going to have a “no deal Brexit”, we have seen the bottom.

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

Trade With A Regulated Broker