GBP/USD Price Forecast – British Pound Pulls Back

The British pound has pulled back a bit against the US dollar during the trading session on Wednesday, as we had gotten a bit overdone on Tuesday. At this point, it has become much more apparent to me that the market is going to continue going higher given enough time, but it also has to respect the idea of gravity. With that in mind, I like the idea of buying pullbacks, especially near the 1.32 level if we get that opportunity. So far, it even looks as if the 1.33 level may offer enough support to keep the whole thing afloat.

GBP/USD Video 03.09.20

Looking at this chart, I do believe that part of the pullback was due to the 1.35 level offering so much in the way of resistance, as it has been a longer-term target for a lot of traders. I think given enough time, we are very likely to see a push through that level, but we may need to pullback in order to build up the necessary momentum. Keep in mind that this pair is highly volatile at times, and of course we have Brexit and the entire European situation weighing upon it, but at the same time it is being pushed to the upside due to the Federal Reserve liquidity measures that are so anti-US dollar. With that being the case, I do believe that pullbacks can be bought into, and that is essentially what I will be doing is waiting for that pullback in order to take advantage of value.

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