GBP/USD Price Forecast – British pound takes off during early Tuesday ours

The British pound has rallied rather significantly during early trading in two’s action, but as you can see we are starting to run into a little bit of resistance at previous trouble in the form of the 1.3250 level.
Christopher Lewis
GBP/USD daily chart, October 17, 2018

The British pound continues to struggle a bit near the 1.3250 level, which makes a bit of sense as we still have plenty of headline risk out there when it comes to the Brexit. I think that the 1.3250 level being broken to the upside would be an extraordinarily strong sign, but I also believe that we need some type of breakthrough in the Brexit negotiation for that to happen. Until it does, I anticipate that we will probably continue to struggle to get above there, and quite frankly it would not surprise me at all to see a return to the 1.31 handle.

I believe that below there, the 1.30 level is massive support, and of course will continue to be watched quite closely as the market participants always keep an eye on large numbers as such. I think that the market will eventually break out to the upside but I do think we are more likely to see a bit of a pullback in the short term than anything else. I have no interest in trying to hang onto a short position, but I do recognize that short-term traders may be able to profit from a small draft lower.

The alternate scenario of course is a break above the 1.3250 level, which would send this market much higher, perhaps as high as 1.35 eventually. We obviously would need to see some type of catalyst for that to happen though, and quite frankly the only one that is likely would be the Brexit negotiations finally settling down.

GBP/USD Video 17.10.18

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

Top Promotions

Top Brokers

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.