GBP/USD Price Forecast – British Pound Pulled Back Against The US Dollar

The British pound has initially tried to rally during the trading session on Monday but gave back the gains to reach towards the 50 day moving average. That being said, the market looks as if it is trying to break back down towards the trendline, but somewhere between here and there we should see buyers come back in, based upon not only the trend line but the fact that most of the “risk off” attitude has nothing to do with Great Britain, so it’s probably only a matter of time before this turned back around. I like the trendline as an area where buyers return, and I recognize that as we go through the entire Brexit situation it will continue to be very noisy.

GBP/USD  Video 28.01.20

Looking at this chart, you can expect a lot of choppy and volatile trading, but if we can turn around a break above the 1.32 level, that will begin the major move to the upside and towards the 1.35 level again. If we break down below the uptrend line, that would not only break the trendline, but it would also break the 1.30 level, an area that is going to attract a lot of attention due to the fact that it is a large, round, psychologically significant figure. All things being equal, if you are patient enough you should be able to get some type of opportunity to buy the British pound that cheaper prices. If we do break down below the 1.30 level, then the market could go down towards the 1.28 level underneath.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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