GBP/USD Price Forecast – British Pound Continues to Grind Higher

The British pound has rallied a bit during the trading session on Tuesday to reach above the 1.3250 level. Ultimately, there is a lot of resistance just above but the one thing that we have learned about the British pound over the last couple of years is that no matter what happens, it finds to rally eventually. We are getting closer to the top of the overall channel that you can make out from September, so therefore we might be getting a little bit overextended. However, regardless of whether or not that is the case I have absolutely no interest in trying to short the British pound, as it has the ability to turn around and rally at the slightest hint of good news involving Brexit.

GBP/USD Video 18.11.20

At this point, it appears that the 1.33 level is the next barrier, but it is a minor one to say the least. Once we break above there, then the British pound will go looking towards the 1.35 handle. To the downside, the 1.31 level should be supported, and therefore I would be a buyer of dips, extending all the way down to the 1.30 level. At like to see some type of supportive daily candlestick to do so, but I recognize that we may or may not even get that opportunity. That being said, I have no interest in shorting this market, because of the resiliency of sterling itself. Even though the United Kingdom is going to lock itself down, it does not seem likely that we are going to see the British pound pay the price. Quite frankly, I think people are looking at quantitative easing coming out of the Federal Reserve more than anything else.

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