GBP/USD Forecast Today 08/07: Finds Buyers On Dips (Video)

(MENAFN- Daily Forex)

• The British pound has been all over the place during the trading session on Monday as we are dealing with the latest headlines.
• The latest headline today during the Monday session has been that Donald Trump has announced there will be more tariffs being levied on Japan and South Korea on August 1st.
• The market freaked out a little bit. And we saw yields in America spike. That makes the US dollar a bit more attractive. But when you look at the chart, there isn't a lot going on here other than consolidation after a breakout.

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If you didn't know of all the chaos going on in the headlines, this would be an obvious pullback and potential retest play. I think that's essentially how you have to look at it. That way, you don't get too caught up in the minutia of the latest headlines with this being a long-term uptrend that is just simply trying to do what it can to find more buyers.

If we do break to the upside, the 1.38 level would be the target. And I think if we were to break down below the 1.3550 level, then you have a real chance of testing the 50-day EMA. Ultimately, I do think this is a positive market and we need to keep it that way. The market has favored the British pound over the US dollar for ages now. Even on the way down, the British pound was less bad than many other currencies.

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Now on the way up, it's outperforming most of them. So I believe at this point in time that we have a situation where the market continues to look at each dip as a potential buying opportunity with what has been a very strong uptrend. I have no interest in shorting.

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