GBP/USD Price Forecast – British Pound Falls Hard

The British pound gapped lower to kick off the trading session on Monday, and then continue to drive rather significantly. That being said, the market is likely to continue seeing a lot of volatility, but there is a significant amount of support underneath just waiting to come into the market. Ultimately, the 1.30 level should be massive support, so I think at this point it is simply a matter of waiting for some type of turnaround and bouncing higher. Ultimately, if the 1.30 level does get broken to the downside, then you need to “reset” the overall marketplace and start looking for another place to start buying as the trend is most certainly bullish.

GBP/USD Video 08.09.20

The Federal Reserve continues to loosen monetary policy and that of course should work in favor of the British pound, if for no other reason than that alone. Ultimately, I do think that the British pound rallies but there may have been a little bit of a “knee-jerk reaction” to the idea of the UK leaving the EU without some type of an agreement due to headlines over the weekend. That being the case, the market is likely to see more of a “buy on the dips” type of mentality, once the dust settles.

It is nice to see that we are starting to think about Brexit again, but at the end of the day nobody really cares. It is all about the US dollar and has been for some time. Later this year, it is likely that we could see more of a focus on Brexit, but this slight reaction is barely a blip on the radar when it comes to the overall trend.

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