GBP/USD Price Forecast – British pound breaking out to kick off the weekThe British pound has broken to a fresh, new high again, in a sign of real strength. Now that we are starting to do so, I feel that it’s only a matter of time before we get a longer-term rally.
The British pound has rallied again to kick off the week on Monday, breaking above the 1.3125 level again. By making a fresh, new high, it tells me that we should continue to go much higher, and that we are trying to break out for the longer-term move. Any sign of a Brexit deal will send this pair much higher plain and simple. I think at this point it’s likely that the British pound goes higher given enough time, but I also recognize that it’s not necessarily going to be the easiest trade to take. Clearly though, there is an upward proclivity, and as a result I don’t have any interest in shorting this pair. I think you should start to look at pullbacks as value and treat them as such. I’d be buying pullbacks at this point, and I don’t think that it’s going to be the easiest trade to hang onto, but this is Where Eagles Dare, meaning that if you are going to make massive profits, you’re going to have to be uncomfortable.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
I believe that the 1.30 level underneath should be supportive, so with that being the case if we break down below there I would start to rethink a few things, at least in the short term. Regardless though, I would say that the upward momentum is a thing that’s probably here to stay longer term, because the British pound is so historically cheap at these levels. I would add as the trade goes in my favor.