GBP/USD Price Forecast – British pound shows signs of life yet again

The British pound initially fell during the trading session on Tuesday but then turned around at the 50 day EMA to rally yet again. At this point though, it is only a matter of time until we run into exhaustion and major resistance above.
Christopher Lewis
GBP/USD daily chart, September 11, 2019

The British pound initially pulled back during the trading session on Tuesday, reaching towards the 50 day EMA before turning around and showing signs of strength yet again. Looking at this chart, a pullback should be coming rather soon, but I would anticipate that the 1.25 level would offer some type of resistance or perhaps even a bit of a “ceiling” in this market. All things being equal it’s very likely that we will continue to see signs of exhaustion going forward. After all, the Brexit is still a massive overhang, because quite frankly nobody really knows how that’s going to play out.

GBP/USD Video 11.09.19

To the downside, if we were to break down below the 1.2250 level then I think the British pound would be free to go towards the bottom of the recent move, which is the 1.20 level. At this point in time, not only do I see the 1.25 level as resistance or the “ceiling” above, but I also recognize that it’s very likely the 200 day EMA will go racing towards that level, which of course would also offer a lot of resistance. All things being equal I think the one thing you can count on is a lot of volatility but that’s nothing new with the British pound. That being the case, you need to keep your position size relatively small but it is still a “sell the rallies” type of situation that this pair finds itself in.

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

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.