GBP/USD Price Forecast – The British Pound Struggles To Go Forward

The British pound initially tried to rally during the trading session on Monday, but as you can see, we gave back quite a bit of the gains somewhat early in the day. With that being the case, it shows that we just don’t have anywhere to be right now, which isn’t a huge surprise now that the election is out of the way. I anticipate that we will probably see a little bit of a pullback in order to try to find momentum, as markets are probably a bit exhausted right now. I believe that the 1.30 level underneath should continue to be a bit of a “floor” in the market, as it is the top of the bullish flag. I think at this point you should be looking at pullbacks as potential buying opportunities but quite frankly there isn’t much going on here that makes me want to get involved.

GBP/USD Video 17.12.19

If we break above the 1.35 handle, then it’s obviously a very bullish run just waiting to happen. Ultimately though, at this point we shift focus from whether or not Brexit is going to happen, but what the trade deal would look like post Brexit. Ultimately, I suspect that we will see the United Kingdom gain a bit of an upper hand after three years of weakness, at least when it comes to negotiating. I am looking at pullbacks right now as a potential buying opportunity based upon value more than anything else. We are still historically cheap when it comes to the British pound but unfortunately, we are still going to have a lot of headline concerns out there from time to time, just as we have for the last three years.

Please let us know what you think in the comments below