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

The British pound initially rallied most of the day in European trading based upon relatively good news coming out of London, but at this point we are starting to fade a bit. Looking at the chart, it’s obvious that there is a significant amount of noise near the 1.32 level, so it’s not a huge surprise. However, the larger consolidation area is marked by the yellow boxes on the chart, with the 1.3350 level above being massive resistance, while the 1.30 level is massive support.

GBP/USD Video 04.04.19

Currently, I believe that this market is going back and forth between these levels as it await some type of resolution to the Brexit situation. When you look at the British pound from a historical standpoint, it is most certainly cheap overall, but as long as there is concern out there it’s going to struggle to hang onto gains for longer-term moves. As soon as we break above the 1.3350 level though, the market will probably go looking towards 1.35 handle above. On the other side of the equation, if we break down below the 1.30 level, then we could drop to the 1.28 handle underneath which is essentially an area where we could “reset” when it comes to trying to build up the move higher. Longer-term, I do believe that the British pound will shoot much higher, but obviously we have a lot of headline risk out there between now and then.

Please let us know what you think in the comments below