GBP/USD Price Forecast – British Pound Continues To Press Highs

The British pound continues to rally during the training session on Thursday as we get more rumors about a Brexit deal happening sooner rather than later. However, this is probably a story for the weekend so that is something to keep in the back of your mind. Ultimately, I think that pullbacks continue to be bought into, but it is possible that the latest rumor could throw this market into a complete tizzy, so you need to be cautious. Furthermore, you have the Non-Farm Payroll numbers coming out during the trading session on Friday, suggesting that the volatility could pick up as well.

GBP/USD Video 04.12.20

The biggest problem that you are going to run into here is that we could get a deal over the weekend, or perhaps maybe we will not. This sets up for the possibility of a gap on Monday, so I think that the pair will be a serious amount of trouble just waiting to happen if you are on the wrong side of the trade. Pullbacks should be buying opportunities unless of course it comes down to the Brexit situation being a “hard Brexit.” It is hard to tell what is going to happen next, but no matter what it is, it is going to be a big deal. We are getting to the point where it is “crunch time” when it comes to Brexit, and therefore at this point in time the status quo is to continue to buy dips, but we should get some type of resolution rather quickly.

As things stand right now, I would assume that we are eventually going to break out to the upside, perhaps for a longer-term “buy-and-hold leg.” However, never underestimate the ability of politicians to screw things up.

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