GBP/USD Price Forecast – British pound continues to grind higherThe British pound pulled back slightly during the trading session on Thursday, but at the end of the day we are still grinding higher overall.
The British pound pulled back a bit during the trading session on Thursday, as we continue to see a bit of resistance near the 1.33 handle. At this point, it looks as if the market is ready to continue to try to break out to the upside, but obviously we have a lot of headline risk out there. There are multiple votes during the week that have thrown this pair around, but at the end of the day it looks like the idea of the Brexit may be going by the wayside. If we either get a delay or a complete reversal, it will probably be good for the British pound initially.
Longer-term, the British pound is very cheap, and quite frankly I believe that longer-term traders are picking up the British pound at these low levels due to historic norms. Ultimately, this is a market that continues to show signs of an upward proclivity, but that doesn’t mean we will get the occasional pullback. These pullbacks should be thought of as a value proposition, unless of course we turn around and break below the 1.30 level with some type of momentum. Until then, I suspect that this is a market that will continue to levitate towards these areas.
If we can break above the 1.3350 level, then it’s very likely that the market will go looking towards 1.35 handle after that. That of course is a large come around, psychologically significant figure so expect a certain amount of reaction to that level, but by the time we get to the 1.35 level we will have broken out yet again and it will only confirm the fact that we are bullish.
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