GBP/USD Price Forecast – British pound consolidates after gains on Tuesday

The US dollar was soft in general during early trading on Tuesday, which of course extended over to the cable pair. The question now is whether or not this pair can shrug off a lot of the concerns about Brexit to continue to go higher. Breaking above the 1.2750 level was a good start and clearing the 1.28 level after that is an even better one. However, there are plenty of headlines out there that could cause this market to turn around quite quickly, so I’d be cautious about putting far too much money into the upside at this point. I anticipate that we may need to see a pullback rather soon, but if we can break above the 1.2850 level, we could find ourselves going all the way to the 1.30 level. This is more about the US dollar and less about the British pound, and if he can stay that way it’s actually good news.

The only way focusing on the British pound will be good news is if we suddenly get good news about the Brexit or some type of deal. Until then, this is going to be one of the underperformers if you are trying to short the greenback, so keep that in mind. Because of this, even though you can make an argument for buying that pair I would sit on the sidelines and look to short the US dollar against other currencies such as the Euro or the Aussie. However, if we get US dollar strength, this is the market you want to be in.

GBP/USD Video 22.08.18