GBP/USD Price Forecast – British Pound Pulls Back Slightly

The British pound has pulled back just a bit during the trading session on Wednesday as we continue to grind back and forth. The 1.30 level underneath is massive support, and as a result it looks likely that we will continue to see that area be reactive. We have recently tested breaking above the top of the candlestick from Monday, making it an inverted candlestick. If we can break above there, then the market is likely to continue going higher, perhaps reaching towards the recent highs. After that, the market should then go looking towards the 1.35 handle, possibly even higher than that.

GBP/USD Video 27.08.20

Short-term pullbacks and even if we break down below the 1.30 will be buying opportunities eventually. The 50 day EMA is racing towards the 1.30 level underneath, an area that again will be supportive not only due to the round figure but the 50 day EMA coming into play. If we break down below there, the market looks as if it is going to go looking towards 1.2750 level, extending down to the 1.2650 level. That is an area that was massive resistance previously, so therefore should be massive support going forward. With all that being said I like the idea of buying these dips and taking advantage of them, because quite frankly the Federal Reserve is going to do everything it can to loosen monetary policy and that is something that we are probably looking at for years going forward, so I think that will be reflected in the FX markets given enough time.

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