GBP/USD Price Forecast – British pound finding support

The British pound has gone back and forth during the trading session on Friday at the 1.30 level, which of course is crucial. That is an area that will attract a lot of psychological importance, so therefore don’t be surprised at all if we continue to bounce around here. That being said, we did get a lot of good news out of the United Kingdom, as the economy is doing better than believed previously. That being said, it’s very likely that we are going to see this market bounce around due to the trade talks in the United States between the Americans and the Chinese, as it will greatly influence the US dollar.

GBP/USD Video 13.05.19

All things being equal, it does look like we are trying to bounce but I can make an argument for a range between 1.29 below and 1.32 above. As we are basically in the middle of it, you could make an argument that we are close to “fair value.” Ultimately, I would be more interested in shorting at the 1.32 level and buying at the 1.29 level. Although I believe we will probably bounce from here, there’s far too much shopping as an noise just above to make this an easy enough trade for me to be interested.

If the trade talks fall apart, it’s very likely that the US dollar will strengthen as money goes into the treasury markets. If it goes well, then the market will focus on the better than anticipated economic numbers out of the UK.

Please let us know what you think in the comments below