GBP/USD Price Forecast – British pound finds value hunters on ThursdayThe British pound went sideways overall during the trading session on Thursday before dipping. However, we found enough support underneath the 1.32 level to show signs of resiliency yet again.
The British pound when sideways initially during the trading session on Thursday, breaking below the 1.32 level initially, but finding buyers to lift the market in that region. It’s likely that we are ready to start finding reasons to go long and reach towards the 1.33 level again. That’s an area of resistance that I think if it gets broken, it’s likely that the market could then go to the 1.35 level after that. That level will attract a lot of attention as it has in the past, but I do think that the buyers will run the show given enough time, especially if we can stay out of the lot of noisy headlines.
If we do get some type of escalation of tensions with Teresa May and the other Conservatives in the United Kingdom, then it’s possible that we could break down. If we break down below the 1.3175 handle, we will probably drop towards 1.31 level after that. Overall though, I believe that we are more likely to go higher than lower in the short term. I recognize that this market is probably one that you should probably be very quick to get in and out of, and longer-term trading is very difficult to deal with right now, as positions can turn around very quickly. Because of this, you need to be quick to get out of a position if it works against you, because there have been so many violent moves. Because the market is moving on headlines and rumors more than anything else, it’s likely that this will continue.