GBP/USD Price Forecast – British pound reaches higher on Wednesday

As it has been stated by European officials that the Brexit talks are heading into their final chapter, it looks to me as if some people are trying to get a head start on a potential reversal of the British pound weakness that we have seen for so long. I’ve seen this before, markets will suddenly turn around just because there is some type of clarity. It doesn’t even necessarily have to be a good deal, it just needs to be a deal at this point. I think this is what we are seeing, the markets are reacting to the fact that this whole story may be over soon.

I believe that the 1.30 level above is going to be massive resistance, and I don’t think that the market will break through it easily. However, I also recognize that if we do, the market will go much higher. This is an area that will continue to attract a lot of attention anyway, so at this point it doesn’t surprise me that we have seen the market looking like it very much wants to go and find out if we can break through. If it doesn’t, then it might end up being an ice shorting opportunity as large figure traders will come in. However, clearing the 1.30 level on a daily candle would be extraordinarily bullish. In the meantime, I think we are at least going to go looking towards that figure, unless of course some type of horrible headline comes out involving the Brexit.

GBP/USD Video 23.08.18