GBP/USD Price Forecast – British Pound Continues to Bang Against Resistance

The British pound went back and forth during the trading session on Friday, as we continue to bang up against the 1.35 handle. At this point in time though, even though we had the Non-Farm Payroll numbers come out, the reality is that we are waiting on the next Brexit headlines. We are getting a mixed bag as per usual, so it is worth noting that perhaps we have a way to go before we get clarity. Nonetheless, it is obvious that people are trying to drive the Pound above the 1.35 handle, and therefore it will be interesting to see whether or not we can do that. Ultimately, the market does look as if it will break out given enough time, but we need to wait to see what happens over the weekend when it comes to Brexit negotiations.

GBP/USD Video 07.12.20

At this point, it looks like there are still sticking points to deal with but ultimately the market will find itself being very bullish when it comes to the British pound if we can get some type of work around for the future when it comes to cross-border dealings between the British and the Europeans. Given enough time, it is likely that we will see reasons to go long, if for no other reason than the fact that the British pound is extraordinarily cheap by historical standards. However, that is not to say that there will not be some type of volatility and noise between now and then, but ultimately the British pound certainly looks as if it is ready to take off.

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