GBP/USD Price Forecast – British pound gets a boost from EU officials

The British pound rallied significantly during trading on Monday, slamming into the downtrend line as I record this video. However, there is still plenty of work to do but it looks as if they are actually making some type of progress in the Brexit negotiations. Because of that, the British pound has been picked up a bit as markets are looking for a negotiated settlement, regardless of what it is. Quite frankly at this point the most important thing is that they have come to some type of agreement instead of a “no deal Brexit.”

If we can sustain a move above 1.31, I think at that point the British pound will move into the “buy-and-hold” category, but there’s a lot of noise to be chewed through before we can make that decision. Once we do though, this could be a very interesting currency pair to trade, as it could become more of an investment at that point. Historically speaking, the British pound is low, so it certainly would make sense that it would go higher over the longer-term. However, I suspect that plenty of retail traders have been burned over the last several sessions, as every time there is a hint of a breakout, it gets turned around. However, this time it is a bit different as it’s an actual EU official making those comments. This isn’t just some manipulation via social media.

GBP/USD Video 11.09.18