GBP/USD Forecast Today 20/8: Approaches 1.30 Level (Video)
Date
8/20/2024 3:09:07 PM
(MENAFN- Daily Forex)
The British pound has rallied again during the trading session on Monday as it looks like we are threatening the 1.30 level. The 1.30 level is a large round psychologically significant figure and therefore I think it does make a certain amount of attention seeking traders pay attention to this pair. After all, there are a lot of options barriers at these large, round, psychologically significant figures, and therefore a lot of people will look at this through the prism of whether or not people are going to be aggressive.
Short-term pullbacks will almost certainly be buying opportunities and I think that the 1.2850 level underneath is massive support Furthermore, you also have the 50-day EMA racing towards that area So I think it all ties together for a potential pullback and then bounce That being said if the market were to break above the 1.3050 level then the market could continue to go higher. Having said that we are a little overstretched at this point and it looks to me like it's a situation where we probably need to find value hunters underneath.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money We Will Continues to See Noise
All things being equal, this is a market that continues to be noisy and that will be the case going forward as traders around the world continue to worry about what's going to happen with central banks. Furthermore, we are in the midst of getting ready for the Jackson Hole Symposium, and that will have speeches from both the head of the Federal Reserve and the head of the Bank of England.
So that could throw this pair into a little bit of disarray as well. I do think we're overdone, and I do think that we pull back, but I don't necessarily think that it's going to end up being a shorting opportunity. Rather, I think you probably get a chance to buy the pound at a lower price if you're just patient enough. That being said, it's very difficult to time this move, but I certainly think that you will get an opportunity to pick up British pounds“on the cheap.”
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