GBP/USD Price Forecast – British Pound Sideways On Friday

The British pound has gone back and forth during the trading session on Friday as we wait to see what happens with the UK Parliament voting on the deal that Boris Johnson agreed with the European Union regarding Brexit. Ultimately, this is a market that is overextended so it’s very likely that disappointment could come into the picture. Even if we don’t get disappointment, the question at this point is “exactly who is left to start buying?”

GBP/USD Video 21.10.19

The 1.30 level above offers a significant amount of resistance in the form of psychological resistance, and of course structural resistance. At this point, I believe that a pullback makes quite a bit of sense anyway so with that being the case it’s likely that the market needs to at least come back to reality. The 200 day EMA underneath could be a nice buying opportunity, so at this point some type of support would be a potential nice buying opportunity based upon the longer-term EMA and of course the fact that there is a nice hammer there. The 1.25 region is just below there, so it’s likely that there will be a certain amount of buying opportunity. The alternate scenario of course is that we break above the 1.30 level, but that will end up being more of a “blow off top” scenario. The market has come so far in such a short amount of time it’s difficult to get overly excited about taking on the risk of buying at this point. Look for value to the upside.

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