GBP/USD Price Forecast – British pound continues to stay volatile

The British pound pulled back a bit after rallying quite significantly during the day on Wednesday. By doing so, the market looks as if it isn’t quite ready to go higher, but I also recognize that there is a massive amount of support underneath.·FX Empire
Christopher Lewis
Updated
0
In this article:

The British pound initially rallied quite significantly during the trading session on Wednesday but pulled back as we approached the 1.30 level. Ultimately, there is a previous downtrend line that should offer support, and it’s likely that the buyers will come back given enough time. I would expect a lot of volatility, mainly because of the Brexit. With the Brexit headlines out there moving things around, there is a certain amount of uncertainty when it comes to the British pound, but I do think given enough time we will find plenty of buyers.

GBP/USD Video 14.02.19

If we do break down from here, I believe that the 1.27 level should be massive support, just as I think the 1.33 level above will be massively resistive. Given enough time, I think that we will eventually break out to the upside, but we obviously need some type of resolution to this mess when it comes to the Brexit for a longer-term drive. Until then, I think that short-term dips continues offer value that traders will be willing to take advantage of. I think the people are starting to build large core position, in a bid to build up a longer-term trade.

I think given enough time, we will probably reach towards the 1.35 handle, but that obviously is a long way away. I think you should keep your position size small, and then only add when it works out in your favor. This is one of those situations that could make a career, if you are cautious and intelligent about it.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

More From FXEMPIRE:

Advertisement

Recommended Stories