GBP/USD Price Forecast – British Pound Continues Consolidating Against Greenback

The British pound has rallied during the trading session on Tuesday to reach towards the 1.3150 level. It looks like we are going to test is level again, and if we can break above the highs from last week, then the market is likely to go towards the 1.35 handle. Ultimately, I do think that happens, but the question now is whether or not we have the momentum to finally break above there. To the downside, the 1.30 level continues offer support and the fact that we go back and forth as we have over the last few sessions, then it is likely that the market is starting to get used to the idea of being up here.

GBP/USD Video 12.08.20

The Federal Reserve continues to see the need to flood the market with greenbacks, and therefore it makes quite a bit of sense that the US dollar falls overall, which the British pound will be a beneficiary of. This does not mean that it will necessarily be the best performing currency, although it has been as of late, just that it will be stronger than the US dollar in general. If we can break above the highs of last week, I think that move could be rather quick. On the other hand, if we break down below the 1.30 level then it is likely that we pull back towards the 1.2750 level. That is an area that is massively supportive and therefore I would be willing to jump in with a much bigger position down there based upon the idea of value. I have no interest in shorting this pair anytime soon after the recent move.

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