GBP/USD Price Forecast – British pound rallied significantly during opening session

The British pound rallied significantly during the first few hours of the week, breaking above the 1.2850 level, looking likely to test the 1.29 level next. Been there, we could go as high as 1.30, but I think that it will probably be very choppy in the process. I believe in buying dips, unless of course something truly negative comes out of the United Kingdom, or general headlines overall. I think that the British pound is undervalued anyway, so that being said I think that a lot of the “smart money” is looking to try and get ahead of some type of an agreement with the European Union.

If they get that agreement, I think that the British pound will explode in value, because at the very least you have some type of certainty in the market, something that we have not had for a very long time. I continue to buy dips, and I think that the 1.2750 level should continue to be a bit of a “floor” in the market but given enough time I think we will turn this whole thing around. Expect volatile sessions, but at this point that’s to be expected, as large money flows in and out of this position. I think at this point, we certainly have more risk to the upside than down, but there will be the occasional negativity and pull back to the market that you will have to be able to deal with.

GBP/USD Video 28.08.18