GBP/USD Price Forecast – British pound finding a bid on Wednesday
The British pound initially pulled back on Wednesday but found buyers underneath as we have continued to see the 1.3150 level attract a lot of attention as of late. If that’s going to be the case, it looks as if we are simply trying everything we can to break out to the upside, which of course is a very bullish sign. Ultimately, this is a market that I think continues to see a lot of volatility but at the end of the day the headlines have simply been offering buying opportunities going back several months.
GBP/USD Video 28.03.19
Granted, there will be negative headlines when it comes to the Brexit and the like, but really at this point there’s no reason to think that anything has changed, as the machines come in and start selling the British pound at the first sign of trouble, but the humans continue to buy it. I think at this point algorithmic traders are starting to get slaughtered when it comes to the British pound, and therefore a lot of the volatility can probably be placed firmly on their shoulders.
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To the upside I believe that the 1.3350 level extends to the 1.34 level for resistance, and that tells me it’s going to take a significant amount of inertia to break out. Once we do we will go looking towards 1.35 level and then at that point I think all doubt about the trend being higher for the longer-term will be gone.
Please let us know what you think in the comments below