GBP/USD Price Forecast – British pound all over the place

The British pound has been all over the place on Thursday, quite frankly making for difficult trading as the 1.29 level has been a bit resistive. With the price action that we have seen during the day, it only puts an accent on just how volatile this pair is going to be. Overall, I believe that the British pound is eventually going to be a great longer-term investment, but right now we are too close to the Brexit to have clarity. However, I do believe that longer-term money is starting to jump into the British pound, perhaps trying to front run the good news of a deal.

This is a market that I think could drop all the way down to the 1.2750 level before we see major support. There is a certain amount of support at the 1.2825 level, but I think at this point I think it’s only a matter of time before we have to test one of these levels. I believe that the British pound is going to eventually explode to the upside once we get clarity, but between now and then I think you can count on a certain amount of choppiness and volatility.

Don’t forget the US dollar part of the equation, so pay attention to how the US dollar is doing overall, as it will certainly have an effect on this market as well. Currently, there are a lot of people who are concerned about global trade, so that has put a certain amount of demand in the greenback.

GBP/USD Video 24.08.18