GBP/USD Price Forecast – Pound Breaking Above Psychological Level

The British pound has rallied significantly during the trading session on Wednesday as we are starting to get hints that perhaps a Brexit deal is getting closer than ever, and of course at the same time we have stimulus talks in the United States working against the value of the dollar as it seems like congressional Democrats and Republicans are starting to get closer to some type of deal. With that being the case, the market is likely to continue seeing US dollar weakness, and with the Federal Reserve later in the day, that could be the final nail in the coffin as it were.

GBP/USD Video 17.12.20

Obviously, Brexit still looms large and will still have a huge amount of sentiment being thrown around the market due to the latest headlines and rumors, but as of late it seems like there is at least some type of progress happening, and that is essentially the most important thing that people will be paying attention to. With all that being said, the market is likely to continue to grind to the upside, but I do think that it is only a matter of time before we actually make the real break out. If and when that happens, probably due to some type of an announcement that there is a Brexit deal, the British pound should go looking towards 1.3755 level rather quickly.

After that, the 1.40 level would be the next target. Pullbacks at this point in time should be well supported as we have seen multiple times that buyers are willing to step in and pick up the British pound.

For a look at all of today’s economic events, check out our economic calendar.