GBP/USD Price Forecast – British pound shows weakness again during holiday

Yesterday, I have the perception that perhaps we could find enough support to cause this market to bounce. While that hasn’t necessarily been eliminated, the Thursday candle doesn’t exactly instill a lot of confidence. The fact that we rallied and then gave back all of those gains on a day that the Americans weren’t even doing business is not a good sign. Ultimately, this is a scenario that will probably play out on the weak side, but the jobs number coming on Friday could turn things around.

GBP/USD Video 05.07.19

It probably comes down to whether or not we can break above the top of the Thursday candle stick. If we can, then the market is very likely to try to recover towards the top of what could in theory be the beginning of an inverted head and shoulders pattern. I’m not really willing to risk a lot of money on that, but it would also show a break of a very soft looking candle for the Thursday session. With both of those things going on at the same time and of course the fact that the 1.25 level underneath is going to be major psychological as well as structural support, I think the risk to reward ratio is probably there for you.

To the upside I see the 1.28 level is an area being very difficult to break above, so keep in mind that we will probably struggle to get above there for the foreseeable future. However, if we do break above that level it would be an extraordinarily bullish sign and probably send this market looking towards the 1.30 handle above there. The question comes down to whether or not traders are focusing on the Federal Reserve, or are they paying attention to the Brexit?

Please let us know what you think in the comments below