GBP/USD Price Forecast – British Pound Breaks Higher

The British pound rallied a bit during the trading session on Tuesday, reaching towards the 1.3250 level before running into any signs of resistance. At this point, the market looks like it is simply going to continue the uptrend, but the reality is that you need to find pullbacks in order to take advantage of. The British pound of course is going to continue to be a bit difficult to trade due to the fact that we are Brexit to worry about, and with that being the case it is likely that we will see a lot of back-and-forth trading.

GBP/USD Video 11.11.20

The Brexit situation will continue to be a main driver for the British pound, but right now it looks as if people are willing to be optimistic again. That being said, we have seen this happen more than once so it is difficult to get overly aggressive, but one would have to say that the market is likely to see a lot of volatility going forward, and you should be cautious about jumping “all in” when it comes to the British pound. After all, a headline could knock this pair right back down at any moment, just as it could send it straight through the stratosphere.

For myself, I have been buying the occasional dip, but that is about as excited as I get for this market, due to the fact that there are so many external pressures right now that it is almost impossible to trust the price action. That being said, longer-term we are still trying to grind higher so if you have a bias it should be to the upside more than anything else.

For a look at all of today’s economic events, check out our economic calendar.