GBP/USD Price Forecast – British Pound Pulls Back Again On Friday

The British pound has pulled back a bit during the trading session on Friday, reaching down below the 1.31 handle. At this point, the market will also be paying a significant amount of attention to the 1.30 level, which of course is a large, round, psychologically important level, as well as the top of the bullish flag that had been formed in this market as well. That being said, we have also made a “lower high”, so this is a pair that will continue to be a lot of nonsense going into 2020. There are a lot of headlines out there that will continue to throw the British pound around, as we are trying to change the overall trend.

GBP/USD Video 06.01.20

Trend changes are very messy affairs, so at best were going to get choppy behavior over the next couple of months. I suspect that the 1.30 level will be an area where buyers may return, but it doesn’t necessarily mean that they will jump in with both feet. I anticipate that this is a market that is going to wipe out a lot of accounts, so you should be very cautious about how big your position size is. The 1.35 level to the upside is the massive target the people will be looking for and based upon the bullish flag we could even go as high as 1.38 over the longer term. That being said, it’s going to be very noisy going there.

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