GBP/USD Price Forecast – British pound looking for buyers

The British pound has initially fell during the trading session on Thursday but has found plenty of buyers underneath. We are continuing to go back and forth and therefore it looks like we are trying to form some type of base. Perhaps it is trying to form some type of base for a longer-term move, but I think more than likely it’s just simply undervalued. The fact that we haven’t got any overly negative news about the Brexit lately probably helps as well.

GBP/USD Video 14.06.19

To the downside, I think there is plenty of support extending all the way down to the 1.25 handle, so I think somewhere in this area we will try to form an intermediate term bottom in a market that will certainly be volatile once again. The historically cheap level of course attracts a lot of attention in the form of the 1.25 level, but ultimately I think that longer-term traders are trying to get a footing for a larger move. After all, there will come a time where traders begin to focus more on the Federal Reserve and less on the Brexit, especially if we can get some type of resolution to that entire situation. Quite frankly, it doesn’t even matter what the result of the Brexit is, at this point I think traders are simply sick of trying to guess and of course uncertainty is probably one of the worst things for markets. If the Federal Reserve continues to look soft, that could start to provide the bottom.

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