GBP/USD Price Forecast – British pound gives up gains to close the week

The British pound initially tried to rally during the trading session on Friday but gave back quite a bit of the gains. After a relatively good jobs number in the United States, we started to see the US dollar strengthen in general. That being said, the British pound obviously has its own issues when it comes to the Brexit, which is a huge mess at this point in time. With that type of indecision coming out of the United Kingdom Parliament, it’s difficult to imagine that this pair is going to have an easy go of things in the short term.

GBP/USD Video 08.04.19

While we are still trading between the 1.30 level on the bottom and the 1.3350 level of the time, we are starting to look a little bit soft here. The scenario that I had talked about with the potential “reset” could be playing out, so if we get a daily close below the 1.30 level it would not surprise me at all to see this market tray down to the 1.28 level to try to pick up a bit of support. The alternate scenario is that we break above the top of the candle stick from the Friday session, which sends this market looking towards 1.3350 level again. Regardless, this is a very messy market overall, and you should keep that in mind. It’s going to be very noisy, but I still favor the upside over the longer-term.

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