GBP/USD Price Forecast – British Pound Breaks Out

The British pound has broken out to the upside during the trading session on Tuesday, as we are now seeing the bullish flag come to fruition, and we should in fact see this market move much higher. With that in mind, I do not have any interest in trying to short the British pound, as it has been a primary driver of the bullish move against the US dollar, and of course the fact that the Federal Reserve continues to flood the market with greenbacks. As long as that is going to be the case, it is likely that we see this market go higher, and therefore I think that the longer-term trend change continues.

GBP/USD Video 19.08.20

Underneath, the 1.30 level is going to be massive support, as we have seen that offer massive resistance previously. Ultimately, I think that the market will find reasons to go higher, even though the United Kingdom will certainly have its own problems. For that matter, the Brexit situation still has not been completely settled, so at this point it is likely that there could be some volatility but clearly the overall change in attitude has been strong, and we are seen the US dollar falling apart against most currencies around the world.

The 50 day EMA is just above the 1.2750 level, which was the previous resistance barrier. Ultimately, this 50 day EMA indicator will be followed if we reach towards the 1.30 level. All things being equal, we have recently had the so-called “golden cross”, which also brings in a lot of the longer-term traders as well.

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