GBP/USD Price Forecast – British pound noisy

Algorithmic bots jumped into the fray on Wednesday, pushing the British pound lower as a rumor got out that Teresa May wasn’t interested in the latest proposal by the EU involving the Irish border. However, it looks as if the market has gotten over that as we continue to dance around the 1.3125 level, an area that now needs to act as support. So far it is doing just that, and I think that it’s likely we will continue to see a lot of noise in this area. However, the market has recently cleared this area as it was once major resistance, so I fully anticipate that the buyers will look at it as an area to get involved.

Obviously, there are the occasional headlines will come out to cause damage to the British pound, but it looks as if we will continue to find buyers in this market as we stabilize. The longer we stabilize, the more likely we are to go higher over the longer-term, which is my thesis. Quite frankly, the British pound is historically cheap and I think that it’s only a matter time before we get more momentum for headline news involving the Brexit that’s actually a good thing. Remember, markets hate uncertainty more than anything else, so any type of deal should be a reasonably good thing for this market, all things considered. Once that happens, this pair will probably begin a multi-year rally as it is much more common to see the GBP/USD pair at 1.6 than it is down here.

GBP/USD Video 20.09.18