GBP/USD Price Forecast – British Pound Starting To Bounce Again

The British pound rallied during the trading session on Monday, showing signs of life again. The fact that we have bounced a bit from here suggests that perhaps we could go looking towards the 1.30 level above, which of course is a large, round, psychologically significant figure. That area being broken would be an extraordinarily bullish sign, allowing the British pound to go looking towards the 1.33 level. That’s an area where we have rolled over from previously. That is an area that the market that has shown significant resistance from previously.

GBP/USD Video 29.10.19

The 200-day EMA underneath should offer support near the 1.27 handle, and it could be an area that value hunters come back into get involved in this market with. At this point, the market looks very likely to continue to try to build up momentum. The 1.30 level will of course attract a lot of attention, and of course make headlines if it breaks out to the upside. All things being equal, the market is very likely to continue to find value hunters though, because the British pound is so historically cheap. At this point in time, the 1.25 level underneath is very likely to continue to be a bit of a “bottom.” The 50-day EMA is reaching towards that area as well, so it’s very likely that the market will continue to see buyers in the general vicinity. All things being equal, I don’t have any interest in shorting the British pound, because quite frankly the return has been absolutely brutal.

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