GBP/USD Price Forecast – British pound slams into resistance

The British pound has initially shot higher during the trading session on Tuesday, but struggled at the 1.32 level, an area that has been resistance in the past. In fact, this is a bit of a thick area, so a pullback would make quite a bit of sense. After all, we have recently broken above the downtrend line, pulled back to it, then bounced again. Overall, markets will quite often chop sideways for a while after a major trendline has been broken.

GBP/USD Video 27.02.19

At this point, I look at pullbacks as potential buying opportunities, especially considering that the news of a potential Brexit delay continues to hit the wires. With Jerome Powell speaking in front of Congress for the next couple of days, it’s likely that we will see a lot of volatility when it comes to the greenback. Thank could be reason enough to rally, but at this point I suspect that other currencies will probably do better against the dollar if he does in fact sound very dovish. Longer-term, I still believe that we break out to the upside and that the British pound has bottomed. That being said, I believe that you can probably pick up a bit of value on a dip, but if we were to break above the 1.3333 level, then we have to start talking about an impulsive move to the upside. That obviously would follow some type of news, which at that point would be obvious as it will be the main headline throughout the Forex world. In the meantime, I like picking up value below.

Please let us know what you think in the comments below