GBP/USD Price Forecast – British pound pulls back from round number

The British pound rallied initially during the day on Thursday but found the 1.32 level to be a bit too expensive. However, I think there is plenty of support below, especially near the 1.3150 level, extending a little bit above there as well. I think that it’s only a matter of time before the buyers get involved and send this market higher, and once we cleared the 1.32 level, I think that we would probably go looking towards 1.3250 level. This is a market that is bullish overall, but I think that the political concern in the United Kingdom will put a bit of an anchor around the neck of the British pound. Longer-term, there will eventually be some type of solution to the political theater, and then we should continue to go higher.

I believe that the 1.30 level underneath is massive support, as the large, round, psychological significance of the figure and of course they bounce that we have seen on the weekly chart both tells me that there is a lot of potential buying pressure in that area. I believe that is essentially the “floor” in the market, and that is an excellent area to start buying from if we were for some reason to go back there. I think we have bottomed though, because quite frankly there aren’t that many people left to sell. That doesn’t mean it’s can be an easy rise from here, but I do expect to see that over the longer-term.

GBP/USD Video 27.07.18