GBP/USD Price Forecast – British pound pulls back

The British pound has fallen slightly during the trading session on Friday as we go into the weekend, perhaps taking a little bit of risk off as we will almost certainly have some type of headlines coming out due to the Brexit. Beyond that, the trade talks between the Americans and the Chinese are going on, and that affects the US dollar. With all of that being said, it makes sense that a bit of a “risk off” feel going into the weekend could happen.

GBP/USD Video 25.02.19

We were a little bit overextended to begin with, so will falling on Friday makes a lot of sense for that reason as well. Ultimately, this market does seem to have a lot of buyers in it just below, so I do think that we will continue to see traders try to pick up value. We have recently bounced from the 50% Fibonacci retracement level and the previous downtrend line, so it makes sense that there should be plenty of support underneath. In fact, by the time the Americans are jumping on board it looks as if the British pound is starting to pick up a little bit of strength.

Ultimately, buying on the dips has worked so far and it looks as if the attitude will continue to be the best way to go going forward. This is a market that will be choppy, but that should not be a surprise considering that we could potentially be looking at a trend change. At this point, I have no interest in shorting the British pound, but I do recognize that occasionally it will throw fits.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

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