GBP/USD Price Forecast – British pound bounces

The British pound bounced a bit during the trading session on Wednesday heading into the Federal Reserve interest rate decision. While we are waiting to see whether or not the Fed will cut rates, the reality is that a lot of short-sellers are probably trying to figure out where to go next.
Christopher Lewis
GBP/USD daily chart, August 01, 2019

The British pound has shown a significant amount of resiliency during the trading session on Wednesday as people take profit ahead of the Federal Reserve interest rate decision. This could give a little bit of a boost for the British pound short term, but obviously we are in a downtrend for a reason. The Brexit continues to be a major issue, and therefore I think that it’s almost impossible to see a scenario where you can get excited about owning the British pound for any significant amount of time. I do believe that market players will probably come in and take their profits, and then start selling at higher levels. Ultimately, the higher levels could include the 1.2350 level, and of course the 1.25 level to offer significant resistance. I think the market probably bounces towards that area and then sells off again.

GBP/USD Video 01.08.19

The Brexit will continue to be a major problem and that that’s obviously not going to be fixed anytime soon. With that in mind I believe that you are simply looking for an opportunity to short this market from higher levels, regardless of what the Federal Reserve does. Yes, there will be a short-term move in the market to the upside but think of it as offering value that you can take advantage of. Ultimately, I have no interest whatsoever in buying this pair and think that if you are patient enough you should be able to get a nice opportunity above.

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