GBP/USD Weekly Price Forecast – British pound springs to life
The British pound is what I considered to be a major value play right now. I say this because it has been sold off so viciously over the last couple of months that clearly it’s been overdone. By breaking the top of a neutral candle from the previous week, this shows that perhaps the buyers are starting to make a stand. I think the 1.2750 level will continue to be crucial, so therefore it makes sense to buy dips in the short term. Overall, I believe that this market will eventually go looking towards the 1.30 level where I expect to see more stringent resistance. I’m not saying this is going to be easy, but I do believe that the British pound is trying to bottom in this area.
Remember, markets tend to be forward-looking. Because of this, I believe that we have already priced in some type of resolution to the Brexit. That doesn’t necessarily mean that it’s going to be a good one, but quite frankly as soon as we get certainty the British pound will probably rally, regardless of the outcome. I know that’s a bit counterintuitive, but certainty is reason enough to buy the British pound as we know the United Kingdom will exist in 10 years, regardless of the doomsayers. With this being the case, I think that short-term dips continue to offer buying opportunities for those who are willing to take them.
GBP/USD Video 27.08.18
This article was originally posted on FX Empire