GBP/USD Price Forecast – British Pound Rather Choppy

The British pound initially tried to rally during the trading session on Friday, but then broke down a bit to show signs of weakness. However, we have turned around to show signs of life again, as the market will continue its overall uptrend given enough time. The fact that the market has stabilized a bit after the jobs report tells me that we are likely to continue the overall uptrend given enough time. I like the idea of buying short-term dips, as the British pound is significantly bullish. At this point, the market is likely to see a continuation of everything that we have seen, so I like the idea of shorting the US dollar.

GBP/USD Video 07.09.20

The Federal Reserve continues loosen monetary policy, and quite frankly as the economic conditions do not seem to be getting strong enough for the Federal Reserve to change its tune, it is likely that we continue to see the US dollar soften, at least in the intermediate term. The 1.30 level underneath should continue to be the “floor” in the market, and I think that between here and there it is only a matter of time before we see some type of buying to pick this market back up and reach towards the 1.35 handle. The US dollar is oversold in general, but quite frankly there are a lot of reasons for that. It is not until we break down below the 1.30 level that I would be concerned about the overall trend, so until then I am looking for some type of bounce that I can take advantage of.

For a look at all of today’s economic events, check out our economic calendar.