GBP/USD Price Forecast – British pound shows strength again on Tuesday

The British pound continues to rally during the Tuesday session, reaching towards the recent highs. I think that we will eventually break towards the 1.30 level though, because quite frankly it’s a level that is going to be far too attractive to the overall marketplace as it tends to be interested in large, round, psychologically significant numbers. In general, I like the British pound longer-term, but I recognize there are going to be the occasional pullback, but those should be thought of as opportunities to go long. This will be especially true if we continue to see progress in the Brexit negotiations, and as soon as we get some type of resolution to that situation, is very likely that we will continue to go higher.

Overall, I think that the market will probably attempt to break above the 1.30 level, and if we do clear that level, the market could continue to go much higher. In fact, I believe that would be the beginning of the end of the downtrend. I believe that the 1.2750 level underneath is going to serve as a “floor” in this market, but overall I think that the market is going to continue to find reasons to go higher, just simply because it has been so long that we’ve been selling, you have to start to wonder who is left to sell this pair? That being said, I would scale into a longer-term position, I would not jump in with a full position immediately. Look for value on dips and recognize bounces as opportunity.

GBP/USD Video 29.08.18