GBP/USD Price Forecast – British Pound Pulls Back to Major Level

The British pound has done very little during the trading session on Monday, as we continue to dance around the 1.30 level. This is an area that has been crucial from both a support and resistance standpoint over the past, so at this point in time it is likely that the market needs to digest some of the recent gains. At this point in time, if we break down below the 1.30 level then I will be looking for value underneath as the Federal Reserve continues to print US dollars as quickly as they can.

If we break down below that level, then I think that the 1.2750 level would be an excellent area to start looking for value again. On a breakdown I would be looking at daily candlestick’s to make my decision, but certainly do not want to sell regardless, unless of course there is some drastic change in the overall dynamic.

GBP/USD Video 11.08.20

On the other hand, if we break above the highs from last week, then the market is likely to go looking towards 1.35 level above, an area that had been important in the past as well. Obviously, this is all about the US dollar and has very little to do with the British pound, as the United Kingdom has a whole slew of issues on its own. We still have not figured out Brexit, and do not seem to be anywhere near doing so. A “hard Brexit” looks to be more likely as time goes on, but right now the FX world is focusing solely on the Fed.

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