GBP/USD Price Forecast – British pound finds a lifeline
Don’t get me wrong, this pair will continue to be very noisy but I am bullish of the British pound overall as it is historically cheap. The 1.3125 level above should be somewhat resistive, but I think that it is a minor resistance level and it is simply a signal to start adding to an already long position. We have used the previous downtrend line underneath as support, and now have use the 1.30 level as well. That’s a good sign, but we may have a short-term pullback between now and a break out. I look at those pullbacks as potential value, it will treat it as such. Ultimately, I believe that the British pound has been oversold through this entire Brexit process, and even though we don’t have an agreement yet, the closer we get to either a deal or no deal, we will eventually get a certain amount of certainty, and that’s exactly what this pair needs right now. Once that certainty enters the fray, I think people will be buyers regardless of the outcome.
Your capital is at risk
Even though I recognize there will be short-term pullbacks, and perhaps even violent ones, I have no interest in shorting this market, and am only a buyer. I think building up a larger position could the way going forward, and I think that longer-term traders are most certainly picking up bits of value along the way.