GBP/USD Price Forecast – British Pound Awaits Bank Of England

The British pound has pulled back a bit during the trading session on Wednesday in preparation for the Federal Reserve and the Bank of England interest-rate statements. That being said, there is a very mixed consensus as to whether or not the Bank of England will have to loosen monetary policy. After all, we start the chaos of the Brexit situation overhanging the market. All things being equal though, there is a significant amount of support at various levels all the way down to the 1.28 handle. Because of this, I do favor the upside in the short term, and most certainly in the long term. This doesn’t mean we can’t drop 100 points, but what it does mean is that I prefer to buy dips than trying to short this market.

GBP/USD  Video 30.01.20

If we break down below the 1.28 level, then it’s a completely different conversation. Until then, I’m looking for value in this market and try to take advantage of it when we get those dips. This will continue to be a very noisy market, which should not be any different than usual as the British pound has been very volatile over the last several years but we are starting to get closer to the end of the Brexit situation than ever before, and as that comes, it should bring in more stability. Again, I still favor the upside overall, but I recognize that we are threatening some type of pullback. Breaking below the bottom of the Tuesday candlestick would of course be negative but there are plenty of minor support levels underneath that will eventually cause a bit of a bounce from what I see.

Please let us know what you think in the comments below