GBP/USD Price Forecast – British pound rallies into weekend

The British pound rallied significantly during the trading session on Friday, as we started to reach into the previous consolidation area, which should cause quite a bit of resistance in theory. That being said, I think that the 1.22 level above offers significant resistance that should keep this market down. Even if we do break above there, the 50 day EMA is at the 1.2350 level, and at this point it’s likely that the area will hold as resistance as well. After all, I don’t think that the Brexit is going to change over the weekend, and at this point it looks very unlikely that we are going to see significant progress anytime soon.

GBP/USD Video 19.08.19

Beyond that, we also have the US dollar strength due to the fact that the Treasury markets have taken off to the upside and a lot of people are starting to look for safety. That being the case I think there will continue to be a demand for the greenback, and although we have a bit of a reprieve during the trading session on Friday. I think a lot of this is simply people trying to get flat ahead of the weekend as there’s so much volatility out there. After all, the last thing you want to do is wake-up Monday morning trapped in a gap against you.

I believe that the market will reach down towards the 1.20 level again, and perhaps even break down below there. If it does, then the 1.15 level will be targeted next. I have no interest in buying the British pound, at least not yet.

Please let us know what you think in the comments below