GBP/USD Price Forecast – British pound continues to grind higher

The British pound continue to grind higher during the trading session on Thursday, reaching above the 1.32 level again. This is a market that continues to grind its way higher, and I think it’s difficult for big moves to occur with all of the uncertainty around the British pound. However, it appears that the “smart money” demands more British pound as they get cheaper. · FX Empire

Christopher Lewis

Updated Thu, Oct 11, 2018, 9:08 PM

I have been saying this for some time, it looks as if the British pound is going to try to grind much higher. I think that given enough time, the market will continue to go higher, but there is going to be the occasional pickup along the way. There are headlines that can come out and give us the occasional pullback, but it looks as if the smart money is out there trying to pick up value as the jitters of the Brexit have been overblown at this point. The British pound is historically cheap, and that should continue to be the way traders look at this market. I think the 1.3125 level should continue to offer support going forward, and a pullback should be looked at with suspicion. Every time we sell off rather drastically, it is short-lived, and quite frankly the negative headlines have been even shorter in their effect on price as of late that they had been in the past.

I believe that we will probably go looking towards 1.35 level over the longer-term, but it’s probably going to take several weeks to get there. Once we get some type of pullback, you should find plenty of support areas. I think that eventually we will get the agreement or lack of deal between the United Kingdom and the European Union, and that certainty should be the last barrier for the British pound continue going higher.