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GBP/USD Price Forecast – British Pound Recovers Again

By:
Christopher Lewis
Published: Aug 24, 2020, 13:23 UTC

The British pound rallied a bit on Monday, as we continue to go back and forth in the same general vicinity. It looks like consolidation will be the main theme.

GBP/USD

The British pound has rallied quite significantly during the trading session on Monday to continue the overall consolidation that we have been seen for some time now. At this point, it looks as if we are still in the “sell the US dollar mode”, at least generally speaking. This does not mean that the British pound needs to go straight up in the air, but it does suggest that there is a certain amount of resilience in this market. Because of this, I do believe that buying the dips will continue to pay dividends, just as the 1.30 level should be significant support as suggested by the last couple of weeks.

GBP/USD Video 25.08.20

To the upside, I think that we will eventually break out and go looking towards the 1.35 handle. It may take some time to get there, it may not. It will be interesting to see how this plays out because the Jackson Hole Symposium is this week, and Jerome Powell may say something to joke the dollar yet again. If that is going to be the case, then by the end of the week we may see this market break out again. Either way, it does not look apt to major selling pressure, at least not right now. Even if we did break down below the 1.30 level, I believe that the 1.2750 level should end up offering a significant amount of support. Between there and the 1.2650 level, I believe that there is a significant amount of buying pressure, and I consider that to be the “floor of the market” currently.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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