GBP/USD Price Forecast – British Pound Continues To Find Buyers On Dips

The British pound has broken significantly lower during the trading session on Tuesday, but then turned around to form a bit of a hammer. If we can break above the top of the hammer, then the market is likely to continue going higher, reaching towards the 1.32 above. The trend has been very positive for some time, but recently we have seen some selling due to the comments coming out of Boris Johnson suggesting that he is not willing to take some type of partial deal or deal with some of the regulations that the EU chooses to impose. However, the overreaction is a bit much considering that the two sides have 11 months to sort this out.

GBP/USD  Video 05.02.20

Ultimately, this is a pair that should continue to see buyers jump into it though, because the Federal Reserve is still looking to cut renters rates down the road, but at this point the question then comes down to whether or not the United Kingdom will get some type of comprehensive deal with the European Union. The reality is that they should, and these dramatic moments have provided buying opportunities in the past, and they should as well going forward as the UK has a much stronger position now than it did six months ago, and beyond. To the upside, if the 1.32 level gets broken above, then the market is likely to go looking towards 1.33 handle, the 1.34 handle, and then eventually the recent highs of the 1.3 Philo where I expect to see a lot of selling pressure.

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