FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
40,976,014Confirmed
1,128,016Deaths
30,526,869Recovered
Fetching Location Data…
Advertisement
Advertisement
Christopher Lewis
GBP/USD daily chart, February 18, 2019

The British pound initially pulled back during the trading session on Friday but found enough support at the previous downtrend line to turn around. We are also near the 50% Fibonacci retracement level so it makes a lot of sense that there would be interested in this area. However, I think that there is still a lot of concerns out there when it comes to geopolitical action and of course most importantly in this case the Brexit. Headlines continue to push it around, but I do think that the British pound has been rather resilient considering everything that’s going on. With that in mind, I believe that we have already seen the bottom of this currency pair, and therefore I continue to look for value when it comes to the pair.

GBP/USD Video 18.02.19

Even if we break down below here, I anticipate that the 1.27 level will offer significant support, so given enough time I do anticipate that the buyers return, if not only because of the round number, but perhaps even the 61.8% Fibonacci retracement underneath there. It’s not that the British pound can’t fall from here, it’s just that it has a lot of things working against that happening for any sustainable move. With that, I remain optimistic, but I also recognize that it’s going to be a very noisy ride to the top floor, so be prepared for that and keep your trading positions somewhat small, only adding as the market works out in your favor.

Please let us know what you think in the comments below

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US