GBP/USD Price Forecast – British pound continues to motor higherThe British pound continues to go much higher, as Thursday was more of the same. Now that we are above the 1.3125 level, I am essentially a “buy only” trader when it comes to this pair.
The British pound rallied rather significantly early on Thursday, breaking above the 1.32 handle easily, and now looking likely to go much higher. I believe at this point, it’s very likely that we will see traders continue to enter this market on dips, as it will offer value in a currency that is historically cheap. Because of this, I think value hunters have been pushing this pair higher as we are expecting some type of resolution to the Brexit, even if it’s just simply no resolution. Certainty is the one thing this market has needed for some time, and the closer we get to the announcement, the more likely we are to have it. Historically cheap, this is a very attractive currency for a longer-term investors, which should make you think of big money.
In general, this is a marketplace that will have its occasional headline to worry about, but overall what we have seen over the last several weeks has been every time there’s been a negative headline, I simply waiting for the market to calm down after it you find yourself in a nice position to pick up new long positions. I think the market has made up its mind and I truly believe that the trend has changed for the long term. That doesn’t mean that it’s going to be an easy trade it all times, but it certainly looks like the only direction you should be contemplating right now is upwards, as we have seen so much buying pressure time and time again.