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GBP/USD Price Forecast – British pound continues to chop along

By:
Christopher Lewis
Updated: Sep 28, 2018, 05:08 UTC

The British pound initially pulled back during the trading session on Thursday but found enough support near the 1.31 level to turn around and rally again. However, we have fallen since then yet again in what looks to be very choppy trading.

GBP/USD daily chart, September 28, 2018

The British pound has drifted a little bit lower during the trading session on Thursday, reaching towards the 1.31 handle, an area that of course has a certain amount of psychological importance attached to it. That being the case, we did bounce and then found resistance at the 1.3150 level as we look to have a relatively tight market building. It’s quite common to see this type of action after a major Fed decision, as market participants digest the news. I do believe overall though that the British pound is probably going to continue to rally, but we may have the occasional headline coming out of the Brexit that could cause issues. However, we have seen those massive selloff started a nice buying opportunities and I think that will continue to be the case.

Beyond that, I also believe that the 1.30 level should be supportive, so a break down below there would of course change a lot of things. I believe that the pair is going through a major trend change, and these are typically very messy events until we can get some clarity. That clarity will certainly come in the form of what the ultimate decision involving the Brexit is, be it a good or bad deal, or even no deal at all. I think at that point there will be a certain amount of relief coming into the bear, and we should continue to go much higher. In fact, much of the smart money is already starting to price that in.

GBP/USD Video 28.09.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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