GBP/USD Price Forecast – British pound rallies in risk on Thursday

The British pound has rallied significantly during the trading session on Friday, as the European seem to be coming to some type of consensus when it comes to immigration. This gives the ability of traders around the world to rally around some type of risk appetite, and that of course favors the British pound over the US dollar as the US dollar is considered to be the safety currency.

I believe at this point, the market will probably go looking towards 1.32 level, an area that has been important more than once. If we can break above there, then the market will more than likely find a reason to go even higher. However, any type of negative headline or reaction to the 1.32 level, then the market will more than likely roll over, and then go looking to lower levels. I do believe that the markets will continue to be very choppy, and it appears that the 1.32 level is currently “fair value” in this market, and therefore it makes sense that we continue to dance around it.

If we do pull back from here, the 1.31 level should offer support as there is a cluster of trading just below it. I believe that the market will continue to be noisy, and difficult during the majority of the summer, so I would be very small in my timeframe, and of course my position size.

GBP/USD Video 02.07.18