GBP/USD Price Forecast – British Pound Continues to Show Strength

The British pound has shown itself to be resilient during the trading session, breaking to a fresh, new high, before giving back some of the gains. Ultimately, the US dollar is going to continue to struggle due to the fact that the Federal Reserve has made it clear that the bar to raising rates remains extraordinarily high. Because of this, I believe that this pair will eventually go looking towards 1.35 handle, but we may have a lot of fighting to do between now and then. That would not be overly surprising, we have Brexit to worry about still and that of course the coronavirus figures. At this point in time, Brexit still out there lurking, but it does not seem like too many traders are worried about it.

GBP/USD Video 31.08.20

Looking at this chart, I see obvious support down at the 1.30 level, so I will not be looking to short this market anytime soon. Pullbacks offer buying opportunities as far as I can tell, and with the stance that the Federal Reserve has taken, it makes quite a bit of sense that we would in fact see a bit US dollar weakness over the longer term. With this being the case, I am a buyer on dips, and have no interest in shorting this pair anytime soon. Even if we were to break down below the 1.30 level, there should be plenty of support at the 1.2750 level to continue the overall uptrend. With that in mind, I remain bullish and constructive, but I also recognize that it is can it take a lot of work.

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