GBP/USD Price Forecast – British pound finding buyers

The British pound has fallen initially during the trading session on Tuesday but found buyers underneath the turn around and reach higher. The hammer of course is a supportive candle, and we are sitting on top of the downtrend line, giving me a couple of reasons to think that perhaps the market is done selling off. Beyond that, the 50% Fibonacci retracement level is coming into the picture, so I think that we are more than likely to see some type of bounce from here that should help out.

GBP/USD Video 13.02.19

Looking at this chart, I would anticipate a move towards the 1.30 level, possibly even the 1.32 handle after that. Having said that, it’s going to be very choppy because there are a lot of concerns when it comes to the Brexit, and of course the occasional headline will cause certain issues. Ultimately, I think that the Federal Reserve may continue to help the British pound at least against the US dollar. However, if we were to break down below the 1.28 handle, we could drop down to the 1.27 level after that. That’s an area where the 61.8% Fibonacci retracement level coincides with major support anyway. Overall, I think that there is a lot of concerns out there, so I would be very cautious about putting too much money in the market to get started but would be more than willing to buy the market as it works in my direction again.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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