GBP/USD Price Forecast – British pound continues to grind higher

The British pound rallied a bit during the trading session on Tuesday going into the US trading timeframe, as we are reaching towards the 1.3350 level. That’s an area that has been important for quite some time, so I think we are trying to figure out where to go next. With the delayed Brexit coming, it’s very likely that we are going to continue to see British pound strength, but ultimately we are looking at a scenario that should favor the upside, especially if the Federal Reserve is anywhere near as dovish as they could be this week.

GBP/USD Video 20.03.19

The 1.3350 level being broken to the upside should open the door to the 1.35 handle, based upon longer-term charts and of course the psychology of round numbers. On the downside, if we were to break down below the last couple of  days, of sensibly breaking down below the 1.32 handle, then we could open a path towards the 1.30 level underneath which coincides nicely with the 61.8% Fibonacci retracement level. With all of that combined, I’m looking for buying opportunities in this market, as we most certainly have strength on the site of Sterling, and with news report suggesting that the European Union is looking to perhaps extend the article 50 timeframe as well, it’s very likely we could get 9 to 12 months of time to get things together for the exit. That will of course be good for the British pound as it will relieve some of the pressure going into the major event.

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