GBP/USD Price Forecast – British pound pulls back

The British pound pulled back a bit during the trading session on Friday, as we had finally ran out of momentum over the last couple of days. Quite frankly, I think that buying dips continues to work longer term, but I want to see some type of value jump into the market, in the form of lower pricing to take advantage of this. Remember, the occasional headline from Brexit will cause problems with the British pound occasionally, but I look at those as nice buying opportunities and will continue to welcome them.

GBP/USD Video 04.03.19

On sudden pullbacks, or even just a grind lower, I would be very interested in this pair near the 1.30 level. I don’t know if we get that low, but clearly the safer trade is to buy the dips as we have seen such a bullish move as of late. Traders are betting on a delay to the Brexit, which by extension should mean that there will eventually be a Brexit deal, so therefore the British pound should be thought of as a value play.

At this point, I have a target of 1.35 but I also recognize that we are going to see a few bumps. At this point, I have no interest in shorting the British pound anymore and I think it has bottomed longer-term as the reports of the demise of the United Kingdom were premature to say the least. Looking at historical charts we are still at extremely cheap levels.

Please let us know what you think in the comments below