GBP/USD Price Forecast – British Pound Bounces Back On MondayThe British pound rallied a bit during the trading session on Monday, showing signs of a relief rally. We are at the very bottom of a massive consolidation area and sitting just above the top of the flag from previous trading, thereby sending the market to bounce a bit. If the market can recover the 1.30 level, then it would be a good sign.
The British pound rallied a bit during the trading session on Monday, picking up a bit of strength to kick off the week. However, we are still very depressed as far as levels are concerned and is the main theme in general when it comes to trading against the US dollar. The British pound won’t be any different, although there is a bit of a repricing going on for the longer-term when it comes to the British pound in general. After all, the UK is surviving the Brexit after all, and of course as the economic weakness continues in the European Union, it’s very likely that the British are going to be in a better place as far as negotiations are concerned.
GBP/USD Video 11.02.20
With that being the case, it’s very likely that the British pound will go looking towards the aforementioned 1.30 level, and if we can recover that level it’s likely that the market will then go much higher, perhaps reaching towards the 1.32 level. That being said though, it isn’t necessarily going to be the easiest thing to do, so with that in mind it’s very likely that we will need to be very resilient if we are trying to hang on to the pound and its move higher. Ultimately, if the market breaks down below the 1.28 level, then it’s likely to go looking towards the 200 day EMA underneath near the 1.27 level which should offer quite a bit of support.
Please let us know what you think in the comments below