GBP/USD Price Forecast – British pound continues to find buyers on dips
The British pound pulled back a bit during the trading session on Friday, reaching down towards the 1.3150 level as I record this. The 1.3125 level seems to be rather supportive as well though, so I think it’s only a matter of time before the buyers come back in and try to pick up the British pound. Quite frankly, every time we get some type of negative headline the British pound sold off rather drastically, only to find buyers again. This is a market that should continue to see plenty of interest, as we continue to work through the process of the EU and the UK divorcing. Eventually, we will get some type of certainty, and that should be reason enough to start buying again. I think a lot of “smart money” is starting to pick up the British pound every time he gets cheap.
I also recognize that the 1.30 level underneath is even more supportive, so I think it’s only a matter of time before we can start buying the British pound again. Overall, this is a market that I think continues to attract a lot of attention and rightfully so. Market participants continue to have to battle short-term headlines, but quite frankly we are seeing less and less of a reaction to negativity. I think longer-term the British pound is historically cheap, and I believe that a lot of institutional traders are starting to come to that same conclusion.
GBP/USD Video 15.10.18
This article was originally posted on FX Empire