GBP/USD Price Forecast – British Pound Slams Into Large Figure

The British pound has rallied a bit during the trading session on Friday, reaching above the 1.30 level but is starting to see a bit of noise. The 50 day EMA sits just above there as well and could cause some issues. Ultimately, the market is a bit overbought so a little bit of a pullback heading into the weekend of course would make some sense. Ultimately though, if the market does turn around a break above the high of the Friday session, then it opens up the door towards the 1.31 handle, and then by extension the 1.32 level.

GBP/USD Video 09.03.20

Keep in mind that the US dollar is in a lot of trouble against certain currencies, and the British pound certainly has shown a lot of resiliency over the last couple of days. But at this point it is probably more about the US dollar and the fact that the Federal Reserve is expected to cut interest rates by another 50 basis points that is driving this pair. Granted, there’s a lot of noise when it comes to the British pound and although I do suspect that the market is going to find pullbacks as value as the US dollar certainly has taken a serious hit as far as viability is concerned. Furthermore, the market participants continue to see volatility, and as a result it is likely that the pair continues to make a lot of noise. Obviously, weekend headlines could come into play, but right now the dollar is very soft.