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GBP/USD Price Forecast – British Pound Continues to Reach Towards Resistance

By:
Christopher Lewis
Published: Aug 14, 2020, 13:42 UTC

The British pound rallied again on Friday to close out the week, as we continue to trade back and forth in the same area.

GBP/USD

The British pound has rallied again during the trading session on Friday, as we continue to see resistance above at the 1.3150 level. If we can break above that level on a daily close, then the British pound should continue to go higher, perhaps reaching towards the 1.35 level.

Pullbacks at this point in time should continue to find plenty of buyers, reaching towards the 1.30 level underneath which it should now be massive support. If we can break down below there, I am not a seller though, then it would simply look for value underneath, especially near the 1.2750 level. I believe there is 100 points of support that extends down to the 1.2650 level, so it is not until we break down below that barrier that I would be concerned about the uptrend.

GBP/USD Video 17.08.20

Remember, the Federal Reserve continues to see reasons to flood the market with liquidity, and as long as that is going to be the case it makes quite a bit of sense that the US dollar loses value. You can even make an argument for a little bit of a bullish flag here, which would measure for a move to the 1.35 level, which is my target regardless. Buying on dips continues to be the best way to play this market, and I do not see this changing anytime soon. Ultimately, the trend is your friend, and the trend is most importantly to the upside. With this, I like finding value and taken advantage of what I believe will be a longer-term trend forming.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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