GBP/USD Price Forecast – British Pound Pulls Back

The British pound pulled back a bit during the trading session on Thursday, reaching towards 1.3150 level. This is an area that should show a bit of support, but there’s even more below at the 1.30 level as it is a large, round, psychologically significant figure and of course an area that features the 50 day EMA as well as the top of a bullish flag. That bullish flag measures for a move to the 1.38 handle and that is still my target longer-term. With that in mind, I’m looking for value underneath and I think that the 1.30 level would be an excellent buying opportunity.

GBP/USD Video 03.01.20

In fact, it’s not until we break down below the bottom of the flag at the 1.28 level that I would be concerned about the British pound, and I recognize of volatility probably isn’t going to be any better this year than it was last year. However, the main difference between 2020 and 2019 is that the bias is going to be to the upside. With that, I continue to look for value on dips and recognize that getting out of the way for a day or so might be the smart thing to do. However, one thing the British pound has taught us over the last several months is that it remains remarkably resilient. I do expect the British pound to continue going much higher over the course of the year but recognize that at the very beginning of year there always seems to be a bit of pushing and pulling until the market decides what it wants to do.

Please let us know what you think in the comments below