GBP/USD Price Forecast – British pound rallies Friday

The British pound rallied during the trading session on Friday, reaching towards the top of the Thursday candle stick by the time the Americans came on board. Ultimately, I think there is significant resistance at the 1.28 level, and therefore it’s likely that we are going to struggle to get above there. However, if we do break above there it’s likely that we then start moving towards the 1.30 level above. That of course would be a major move, and a huge turn of events considering all of the negativity around the British pound.

GBP/USD Video 01.07.19

At this point, as long as we are below the 1.28 level you have to believe that it’s probably best to sit on your hands as far as buying opportunities. Selling is much easier done below the 1.2650 level, as it is starting offer a little bit of support in the short term. This does look as if we are trying to form some type of bottoming pattern, but that can take a bit of time. Ultimately, I do think that the lot of this is going to come down to the Federal Reserve as the Brexit headlines are slow at the moment.

All things being equal it could be very dollar driven more than anything else. After all, the headlines about the Brexit are going to be slow at the moment, as the markets are focusing more on the Federal Reserve and of course the G 20 headlines.

Please let us know what you think in the comments below