GBP/USD Price Forecast – British pound pulls back

The British pound rallied significantly over the last several weeks but has pulled back recently to cool off a bit. Quite frankly, this is something that was probably needed because things got a bit parabolic. The 1.3050 level is the beginning of a cluster of orders that I think will continue to pick this market up. Ultimately, I believe that we are going to go to the 1.33 handle, but we need some type of good news to help push this market along.

GBP/USD Video 11.03.19

The Federal Reserve of course is still rather dovish when it comes to interest rate outlook, so at that it’s likely that the US dollar will strengthen unless there’s some type of major financial concern or meltdown out there, which is possibly coming in the future, but that will be something along those lines that you will know. Overall, this is a market that is being held hostage to the Brexit headlines, but as we are starting to see, the idea of a “no deal Brexit” seems to be in doubt, and that was the biggest fear. Once that is out of the question, then we can start to focus on other things. Recently, Mark Carney had suggested that perhaps interest rate hikes may be coming sooner than anticipated, and that of course is good for a currency. Either way, the British pound is historically cheap, and therefore it makes sense that value hunters will continue.

Please let us know what you think in the comments below