GBP/USD Price Forecast – British Pound Bounces Slightly On Friday

The British pound has rallied a bit during the trading session on Friday, as we continue to see a lot of support underneath. That being said though, the market is likely to see the 1.30 level above offering resistance. If the market could break above there, then it would be a very bullish sign and the British pound would probably go looking towards the 1.32 handle. Having said that, it would take a lot of work to make that happen, but at this point if the market was to turn around a break down below the lows of both Thursday and Friday, then I anticipate that the British pound probably goes down to the 1.28 level.

GBP/USD  Video 10.02.20

All things being equal, the market is likely to see a lot of choppiness, but ultimately, I do believe that buyers will return to the British pound and rally longer term. That being said though, it’s likely that we have a lot of choppiness and messy trading ahead as the UK and the EU continue to negotiate the Brexit situation. Furthermore, the 200 day EMA is starting to slope a little bit higher, so if the market reaches that level, it’s likely that the market could find a bit of a bounce from there.

All things being equal, the market will eventually try to get back to the 1.35 handle, but we do not have the momentum to turn things around quite yet. This is a longer-term story for later this year, but in the short term of looking for small buying opportunities.

Please let us know what you think in the comments below