GBP/USD Price Forecast – British Pound Pulls Back Slightly

The British pound has pulled back during the day on Thursday, reaching towards the 1.31 handle by the time the New York office is open. At this point though, we are still looking very much like a market that has broken to the upside, so one would have to think that this pullback is just more than likely going to offer value. However, we still have the unfortunate reality of Brexit being a mess, and that a headline could come out at any point that could cause markets to jump in one direction or the other. It is because of this that although the chart looks very bullish, the reality is that the British pound is probably the least stable of the world’s largest currencies.

GBP/USD Video 23.10.20

Underneath, I see the 1.30 level as a potential support barrier, just as it had been significant resistance. As we continue to go forward, this looks a lot like a market that will try to grind towards the highs again, near the 1.25 handle, which is more than likely a reaction to the EU and the UK still talking about Brexit, and of course the idea of stimulus coming out of the United States. After all, the US dollar has gotten hammered a bit as of late, and of course the British pound would take advantage of that. The size of the candlestick for the trading session on Wednesday shows extreme bullish pressure, so this tells me that there are still plenty of people willing to step in and pick up value.

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