GBP/USD Price Forecast -British Pound Threatening Massive BreakoutThe British pound has slammed into the 1.3150 level at the time of writing, which is a major breakout point from what I see.
The British pound has rallied significantly during the trading session again on Friday, as the British pound looks as if it is set for some type of break out. The 1.3150 level of course is crucial, being an area that has been resistance previously, and an area where we can see a downtrend line being broken as well. With that in mind, it’s likely that a move significantly above here Wilson the British pound much higher, due to the fact that the Bank of England has chosen to stay on the sidelines and wait for any type of rate cut. This only reiterates the possible strength of the British pound going forward, so with that in mind it’s likely that the market will go looking towards the 1.35 handle.
On the downside, if the market does pull back it should only be a continuation of the overall symmetrical triangle that we have been in. It’s very unlikely that the market will break down significantly at that point, just simply pull back and go looking towards the middle of the overall consolidation range. That being said though, the market has been in an uptrend for some time, so I do favor either buying pullbacks or buying a breakout. In fact, I have no interest in shorting this market until we break down below the 1.30 level, something that seems to be almost impossible to do at this point. Expect volatility, but it’s very likely that the upside will continue to be the right direction in which to trade this market. With that, it’s almost impossible to short until something drastically changes