GBP/USD Price Forecast – British pound shows resiliency during Friday session

The British pound initially fell during the day on Friday but has shown a bit of resiliency since pulling back, as the market continues to fumble around a major pivot point of confluence.
Christopher Lewis
GBP/USD daily chart, February 11, 2019

The British pound initially fell during the day on Friday but turned around to show signs of strength as we rallied again. This market is testing a previous downtrend line that had been broken above, so this of course is an area that will attract a lot of attention. That being the case, it makes sense that we have had a decent reaction for the session. We have the 50 day EMA below, and the 200 day EMA above. Those are crucial moving averages that will attract a lot of technical attention. Beyond that, the market is at historically cheap levels, so I do think that there are a lot of value hunters out there trying to get involved.

GBP/USD Video 11.02.19

We obviously have a lot of concerns when it comes to the Brexit, but quite frankly I think we are getting to the point where pretty much negativity has been priced in. It seems as if every time we get a headline, the markets will move first and then try to figure out what it means later, leading to a lot of false moves. However, one thing that is becoming more apparent is the tenacity of the buyers, so therefore I think that they will prevail in the end based upon that alone. I would target the 1.32 level initially, but I think 1.33 and more importantly the 1.35 level will be rather interesting as well. As far as selling is concerned, I don’t have much interest in doing so, at least not anytime soon.

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