GBP/USD Price Forecast – British pound grinds higher

The British pound has been grinding higher during the trading session on Wednesday, as it looks like we are trying to get to the 1.32 level above. Overall, I think that short-term pullbacks will continue to be buying opportunities, as this is more of a slow grind instead of a strong move. That being said, I don’t have any interest in shorting this market, because we have formed a bit of a “basing pattern” recently, and it looks like we are not only going to go looking towards the 1.32 level, but perhaps the 1.3250 level after that.

Remember that there are certain headlines out there that could cause problems with the British pound, not the least of which will be the arguments between Teresa May and the Conservative Party, which seemingly cannot find common ground when it comes to the Brexit. I believe that the market is starting to look at the 1.30 level underneath as the “absolute floor” of the British pound, so I think that longer-term traders are buying these dips based upon value. Quite frankly, the British pound has been oversold for some time, and I think that longer-term “buy-and-hold” traders have gone back into the market to take advantage of these cheap prices. I think that eventually we will see dips being turned around with impulsive moves, and I also believe that eventually we will break above the 1.33 handle, but it may take several attempts to clear that region.

GBP/USD Video 26.07.18