GBP/USD Price Forecast – British Pound Continues to Grind to the Upside

The British pound has rallied again to kick off the week on Monday, as we continue to see a lot of positivity. Ultimately, this is a market that I think will continue to attract inflows of trading capital as the reddish pound has clearly turned the corner against the US dollar. With that being said, breaking above the 1.2850 level during the session was a good sign, and I do think at this point we are likely to go to the 1.30 level.

GBP/USD Video 28.07.20

This does not mean that we get there overnight, but it does suggest that we get there longer term. That being said, I believe that the 1.2650 level should offer massive support if and when we get down there. Ultimately, it is very likely that we will continue the same grinding and sloppy trading with a bullish bias.

To the downside, if we were to break down below the 1.2650 level, it would be extraordinarily negative, but I still think that the 50 day EMA and the 1.25 level would be worth looking at as potential support. I find it very difficult to think that will break down below that level anytime soon, unless or some type of major headline, which would be somewhat self-evident if and when it comes out. With this being said, buying dips will probably continue to be the way forward, as there are plenty of reasons to believe that there will be buyers based upon US dollar weakness.