GBP/USD Price Forecast – British Pound Finds Buyers

The British pound fell during the trading session on Thursday, reaching down towards the 50 day EMA before bouncing a bit to show signs of life. That being the case, it looks as if the British pound is going to try to continue to the upside.
Christopher Lewis
GBP/USD Price Forecast - British Pound Finds Buyers

The British pound initially fell during the trading session on Thursday, reaching down towards the 50 day EMA and the psychologically important 1.30 level. Because of this, the market had bounce due to the idea of support, and it’s likely that we are going to continue to grind higher. The British pound will be moved to buy headlines again this year, but the headlines will be a bit different, and they will probably favor the United Kingdom before it’s all said and done as they have the ability to negotiate free trade deals with the United States, while having the same negotiations with the European Union. Quite frankly, the British have a couple of options here that they didn’t have previously.

GBP/USD Video 10.01.20

That being said, it’s not a very difficult thing to see that this will be very noisy, but at this point it’s likely that the market will try to bounce from here, perhaps reaching towards 1.3250 level before reaching even higher at the 1.35 handle. At this point, it’s very likely that the market will be noisy, but I still favor the upside as we have seen so much in the way of bullish pressure. The bullish flag that had formed previously should continue to offer support and it does suggest that we are likely to go looking towards 1.38 level based upon the measurement of the flag, but that could take months. Either way, technical analysis still favors the upside although it’s been quite a bit of a fight as of late.

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