GBP/USD Price Forecast – British pound testing major support

The British pound has bounced slightly during a very illiquid Friday session, as most people were away celebrating the holiday.
Christopher Lewis
GBP/USD daily chart, April 22, 2019

The British pound has found a bit of support on Friday, but quite frankly this is an area that the traders out there will be paying attention to. If we break down below the 1.2950 level, then the market could very well reach towards the 1.28 level underneath. That is essentially the 100% Fibonacci retracement level, so it would make sense that most traders will be looking for that move. That could be a short-term selling opportunity, and you should keep in mind that the highs continue to get lower, so it does suggest that we are struggling with.

GBP/USD Video 22.04.19

This isn’t to say we can’t rally, but it’s not until we break above the 1.3133 level that I would be interested in buying. I think that what we are seeing more than anything else is a simple drift lower as we have no interest in owning British pound because there is no catalyst to do so. Quite frankly we got the extension of the Brexit for six months, and therefore we probably will be waiting for some type of announcement to decide what to do next. I suspect that we will probably drop, looking for more support at a lower level. I would be a buyer of value closer to the 100% Fibonacci retracement level, but if we did break out to the upside it’s very likely that we could go to the 1.3350 level.

At this point though, it looks as if the US dollar is starting to show signs of strengthening against the lot of other currencies and with no reason to suspect that the British pound is going to get good news about the Brexit anytime soon, it’s very likely that there will be a simple lack of interest here more than anything else.

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

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.