GBP/USD Price Forecast – British Pound Continues To Power Higher

The British pound has rallied significantly during the trading session on Tuesday, breaking above the top of the shooting star for Monday. This is a very good sign and should continue to power the British pound higher. This shows just how much demand there is, and then on top of that the US dollar itself is falling in strength overall. That of course helps this pair, as it is half of the equation. We have seen a significant bounce after a significant sell off, and unfortunately, I think that will continue to be the case in this market as the British pound is simply a headline or two away from the next massive move.

GBP/USD Video 02.01.20

All things being equal though, it’s likely going to be a market that will continue to go towards the 1.35 handle, given enough time. I think that short-term pullback should be thought of as buying opportunities, as it is obvious that the demise of the United Kingdom was reported far too quickly. The 1.30 level should be massive support, and therefore I think that should be considered to be the “bottom” of the market all things being equal. I think we will eventually break above the 1.35 handle as well, as the level has been a recent target. The bullish flag measures for a move to the 1.38 handle, so that’s my longer-term target for this pair. That doesn’t mean we get there overnight, and it certainly will be very noisy between now and then. Keep that in mind, and therefore be cautious.

Please let us know what you think in the comments below