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GBP/USD Price Forecast – British Pound Building Momentum For Next Move

The British pound has gone back and forth during the trading session on Wednesday, as we continue to see a lot of volatility in this pair. Ultimately though, you should keep in mind that Brexit is still a major issue that will have people going back and forth.
Christopher Lewis
GBP/USD Price Forecast - British Pound Building Momentum For Next Move

The British pound has gone back and forth during the trading session on Wednesday, as the market participants continue to try to find some type of clarity. Ultimately, Brexit is a major driver of where we go next, and it should be noted that the market is more than likely trying to figure out its next move. That being said, there is a massive amount of support just below, especially at the 1.30 level. There is also a bullish flag that we are sitting on top of, and that should continue to offer plenty of support.

GBP/USD Video 09.01.20

Looking at the chart, you can also see that the red 50 day EMA is still very much in play, as it has caused support at the last pullback. Ultimately, if we can make a “higher low”, it could continue the longer-term uptrend. Keep in mind that Great Britain probably is starting to see power shift towards itself and away from the European Union, as Boris Johnson has announced that the British government will be negotiating a free trade agreement with the European Union and the United States simultaneously. In other words, it’s essentially his way of telling the European Union that the UK “can do without them if necessary.” With that in mind, I suspect the pair is ready to go higher eventually, so the question now is whether or not we get a short-term pullback towards the 50 day EMA again, or can we break above the Wednesday hi? I would be a buyer at either one of those areas.

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