GBP/USD Weekly Price Forecast – British Pound Pulls Back

The British pound went back and forth during the week, initially rallying significantly but then giving back that entire again. The shooting star is preceded by a hammer so that typically means that we are about to see some type of consolidation. As we are around the 200 week EMA it makes sense a lot of traders will be paying attention to this, but quite frankly this is going to be about the Brexit. Brexit situational awareness is going to be crucial to trade this market for any length of time, because quite frankly it only takes one stupid comment to get the whole thing going in one direction or the other. With that in mind, it does look like we are trying to break out longer term, but it is going to take a significant amount of work and there will probably be several false breakouts between now and when that actually happens.

GBP/USD Video 06.01.20

As a starting point, I’m looking at the 1.29 level as the bottom of the range that extends all the way to the 1.35 handle. Quite frankly, I think that the British pound is going to be even more aggravating this year than it was last year, although we are probably going to see more of an upward bias than down longer term. That would be a complete opposite move of the last year, but much in the same type of attitude, machines trading rapidly based upon the latest tweet or newswire story. Trade small.

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