GBP/USD Price Forecast – British pound continues to grind near large figure

The British pound broke higher during the trading session on Wednesday, and during the Thursday session it looks likely that we are going to continue to go sideways as we consolidate and try to feel out whether the market is comfortable at this high level. At this point, I think if we can stay above the 1.2980 level, the market will probably continue to go higher. Otherwise, I would not be a seller unless there was some type of negative headline to accompany it, and I believe that the impulsive move that we had seen during the day on Wednesday was probably the beginning of a trend change.

If we were to wipe out the impulsive move on Wednesday, that would be an extraordinarily negative sign, probably coinciding with a negative headline that included a lack of a deal or some type of major punishment for the UK leaving the EU. I think at this point though, the EU realizes that the UK is willing to go without a deal, and in the end that doesn’t serve anybody’s interests. I think at this point, the market is likely to continue to see a lot of choppiness, but ultimately I do think that the buyers will continue to push this pair higher as the British pound is historically cheap. Buying the dips continues to be the best way forward.

GBP/USD Video 31.08.18