U.S. Markets close in 5 hrs 19 mins

GBP/USD Price Forecast – British Pound Testing Major Trendline

Christopher Lewis

The British pound has fallen during the trading session on Tuesday, reaching below the 1.30 level. However, there is a major trendline sitting just below that area and one would have to think that those who are bullish of the British pound will certainly be paying attention to this large, round, psychologically significant figure. With this, we could get a bit of a bounce but there are a lot of moving pieces around the world right now, not the least of which of course will be the Brexit situation itself. Having said that, the market certainly looks as if it is going to put a lot of pressure on the support level, so pay attention to the 1.2950 level. If it gets broken to the downside it’s very likely that we will see traders start to sell off even further.

GBP/USD  Video 29.01.20

If the market closes above the 1.30 level for the day, then it’s very likely that we will bounce a bit and try to go towards the 50 day EMA. If the market can break above there, it’s likely that the market then goes looking towards the most recent high, near the 1.3150 level. To the downside, if the market breaks the 1.2950 level it’s likely that we go looking towards 1.28 level after that. Needless to say, we are about to make some type of serious decision, and that something that should be paid attention to. With this, the next 24 hours could be crucial as to where this pair goes for the next couple of weeks. Don’t forget that the FOMC Statement comes out tomorrow as well.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

More From FXEMPIRE: