GBP/USD Price Forecast – British pound rolls over

The British pound, you can see that we have broken back below the 1.32 handle, as the overbought conditions have finally started to whereupon Sterling. Because of this, I suspect that we are going to go looking towards the 1.30 level, and I would be very interested in buying Cable in that area. You can see that there is a hammer rate there, and that has me thinking that there is a lot of buying pressure underneath.

GBP/USD Video 05.03.19

Looking at this chart, I think we may need to back up to build up the necessary momentum, but I think we will eventually get that momentum to finally break out much higher. I believe that the British pound has bottomed longer-term, so therefore I have no interest in shorting this market. At this point, I’m looking for value to take advantage of as the trade will probably be one that you can hang onto for several years. In fact, building up a core position and adding slowly is probably going to be the best way to trade this market. We have recently broken above a major downtrend line, pulled back to find it supportive again, and then rallied significantly. I think this is going to be choppy but clearly the only way to trade this market is to the upside as of late. The only thing that would change this is a “no deal Brexit”, which would only lead to more value eventually.

Please let us know what you think in the comments below