GBP/USD Weekly Price Forecast – British pound continues to fight

The British pound has rallied a bit during the trading session on Friday to continue the bullish pressure for the weekly candle stick. At this point, we continue to go back between the 1.30 level on the bottom and the 1.3350 level on the top. Obviously there are going to be a lot of headlines out there that can throw this market back and forth, and therefore you would expect a lot of volatility. However, from the longer-term standpoint it does look very promising, but obviously patients will be one of the things needed for the realization of profits.

GBP/USD Video 15.04.19

All things being equal, it’s obvious to me that the British pound has broken a major downtrend line and is now trying to garner enough strength to continue to go higher. The entirety of the market is probably based upon the Brexit, but don’t forget that the Federal Reserve has stepped away from tightening, and that was even confirmed a bit more by Jerome Powell during the trading session as he said interest rates are basically about where they need to be. In other words, the Federal Reserve is not going to get in the way of an appreciating British pound. Unfortunately, the British government might, because they cannot come to a conclusion for the entire Brexit story. If they could, that will send this market much higher and we should continue to go towards the 1.35 level, followed by the 1.45 level over the longer-term. If we do break down below the 1.30 level it’s likely that we will need to go down to the 1.28 level to “reset.”

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