GBP/USD Price Forecast – British Pounds Soft On Friday

The British pound has drifted a little bit during the trading session on Friday, as we continue to see the market try to figure out where to go next. Quite frankly, we are overbought so a nice pullback is in order. That could give us an opportunity to reach towards the 200-day EMA which should be somewhat supportive. Ultimately, that’s an area where we saw some type of balance, I would be very interested in going long. That is currently at the 1.27 handle, so pay close attention to that area. After that, the 1.25 level would also be very interesting.

GBP/USD Video 28.10.19

To the upside, the 1.30 level continues offer resistance so it makes quite a bit of sense that the market may struggle every time we rally. Were overbought at this point anyway so I like the idea of finding a bit of value. A break above the 1.30 level would of course be bullish but it would also be a bit overdone. The alternate scenarios that we simply bounce back and forth in this general vicinity, trying to take some type of momentum back into the trade and send markets higher. The Brexit headlines will continue to be a major issue so it’s probably only a matter of time before we get some type of explosion in price. The British pound has changed the overall trend from what I see, so I am looking to buy and not sell but I’m also looking for value. Wait for Sterling to go “on sale” and take advantage of it. However, I would not jump in with a huge position, rather I would like to add to a core position over the longer term.

Please let us know what you think in the comments below