GBP/USD Price Forecast – British pound treads waterThe British pound continues to go back and forth during the trading session on Thursday, as we continue to look at the 1.30 level as a bit of a magnet. This is an area that has attracted a lot of attention, so it makes sense that we will continue to see a lot of choppiness in this area.
The British pound has gone back and forth during the trading session on Thursday, as we continue to deal with the 1.30 level as a magnet for price. Looking at this chart, it’s obvious that we have seen the lot of back-and-forth action, so the fact that we are treading water in a very large number doesn’t make much of a surprise to me. Looking at the chart, I could make an argument for a move down towards the 1.29 level, which was support as of late. A break down below there could open the door to much lower pricing, perhaps even down to the 1.27 handle.
GBP/USD Video 10.05.19
The other side of the equation is that we break above the 1.3050 level, and then go looking towards the 1.32 level as a target. A break above there could send this market to the 1.33 level. Obviously, this is a market that will continue to struggle with a lot of volatility, mainly because the Brexit is in such disarray, so a lack of certainty creates chaos.
Longer-term, I do believe that we are getting close to the bottom with the British pound, because once we get some type of certainty, it will be then when the longer-term “buy-and-hold” traders get involved and simply pick up cheap British pounds. We are historically cheap at this point, and that something that we should continue to keep in mind.
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