GBP/USD Weekly Price Forecast – British pound continues to tread water
The British pound has settled on a negative candle for the week, but ultimately what I find particularly interesting about this is that we are at an area where there is a lot of demand. While there are a lot of questions surrounding the British economy overall, and of course by extension the British pound, we are essentially “holding our own” when it comes to the Forex markets. In the end, I think this is a good sign, and if we can break above the 1.33 handle I think that the market will continue to go much higher.
Your capital is at risk
At that point, I would anticipate a move towards the 1.38 level above. The 1.30 level underneath is massive support, and if we can break down below there, then it obviously changes everything. At that point, I think that the British pound will unwind rather drastically, looking towards the 1.25 handle underneath. When I look at this chart though, I cannot help but think that perhaps we are starting to see a bit of a change overall, and if that’s the case and impulsive move to the upside can’t be rolled out. This will be especially true once we get some type of clarity as far as the Brexit is concerned. I think that’s one of the biggest problems right now, as people simply do not feel like putting money to work as they do not know what to expect.