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GBP/USD Price Forecast – British Pound Pulls Back Again

By:
Christopher Lewis
Updated: Feb 6, 2020, 16:24 UTC

The British pound has pulled back a bit during the trading session on Thursday, but again has found support underneath near the 1.2950 level. At this point it looks as if there are plenty of value hunters trying to get involved.

GBP/USD

The British pound has pulled back a bit during the trading session on Thursday, reaching towards the 1.2950 level which is an area that has seen a lot of support and resistance attached to it. Ultimately, the market is likely to see a bit of support at this juncture, and therefore I do like the idea of buying on these dips as most of the reaction in a negative sense has been due to the European Union threatening to rewrite MiFID regulations to punish the City of London. Ultimately, this is a negotiating tactic and quite frankly the United Kingdom has the upper hand, despite what some bankers may tell you.

GBP/USD  Video 07.02.20

The United Kingdom will almost certainly have a bit of an easier path looking at the United States for a free trade agreement, and therefore they have the ability to play a bit more hardball than previously. The Europeans will certainly need to come to some type of terms with the British and given enough time they will start to see the light, and perhaps give Great Britain an opportunity to finally move through this never-ending process. Keep in mind that the market also has a huge sensitivity to risk appetite in general, so it’s likely that the market will move up and down with stock markets and risk appetite in general. So, having said that we need a bit of good news when it comes to global growth and perhaps even the coronavirus in order to see the Japanese yen continue to get sold off.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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