GBP/USD Price Forecast – British Pound Continues To Chop Sideways Against Greenback

The gains and rolled over towards the 1.31 handle. The British pound continues to chop back and forth, and I think that it is going to be difficult to get overly excited about it in the short term. However, the 1.30 level underneath is more than likely going to be supportive, especially considering that the 50 day EMA underneath is starting to approach that level and therefore we should see a couple of reasons for technical traders to get involved.

GBP/USD Video 08.01.20

That being said, I think a lot of people are looking for value to take advantage of. This of course can be found on short-term pullbacks, and as long as we stay above the top of the bottom of the flag, we should continue to think of this as a buying opportunity. This means the 1.28 level needs to hold in order to stay bullish. All things being equal, I do believe that the market eventually goes looking towards the 1.35 handle given enough time. If we can break above there, the market is likely to continue going higher, perhaps reaching towards the 1.38 level based upon the measurement of the bullish flag. That has not been filled yet, so having said that, it would make sense that we eventually try to get there. All things being equal though, it is going to be very difficult to make it happen and it will probably take quite a bit of time to get there.

Please let us know what you think in the comments below