GBP/USD Price Forecast – British Pound Runs Into Resistance Again

The British pound rallied initially during the trading session on Tuesday, but then pulled back from the 1.33 level as we have seen previously. At this point in time, the market is likely to see a lot of selling pressure, but it is obvious that the British pound is a currency that you cannot short for any significant amount of time. This is a hard lesson to learn, because quite frankly I can give you hundreds of reasons why the British economy should suffer and therefore the British pound should do the same. However, that is what the market is focused on and at this point in time it is the only way you can trade the market, to assume that the British pound has a lifeline.

GBP/USD Video 19.11.20

That being said, I think that we do get a pullback that we can take advantage of underneath, perhaps near the 1.31 handle. That is an area that I think continues to be very interesting to pay attention to, as it begins significant support down to the 50 day EMA and the 1.30 level. All things being equal, I do think that this market eventually goes higher, but we may need to pull back a bit just to build up the necessary momentum. With that in mind, I am looking at a potential pullback as a buying opportunity more than anything else. I have no interest in shorting the British pound, it clearly does not care about Brexit or the UK locking itself down at this point in time.

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