GBP/USD Price Forecast – British pound struggles that major resistance barrier

The British pound has tried to break out during the day on Friday but found the resistance near the 1.3125 level to be far too resistive to get past. At this point, I look at this horrific hourly bar at this level as a sign that perhaps it may take some more work to break out. Ultimately, it’s possible that we will but I believe that these headlines need to go away before this market can continue to break out. Going into the weekend, it makes sense that traders would probably want to collect profits and flatten out so that they don’t worry about the news flow.

The alternate scenario of course is that everything turns around, perhaps on a Labour Party denial, and then we can break out. However, I think going into the weekend and the volatility that seems to be the norm now, it’s going to be difficult for a lot of traders to hang onto this position, so therefore I look for this market probably drift a bit lower before finding value hunters coming back in. This isn’t to say that I believe in a longer-term sell, I think we simply are trying to build up the necessary momentum to make a major break out, which would be difficult to do without some type of catalyst. Obviously, news flow can change everything in the blink of an eye as we have seen more than once, so certainly have your stops in place.

GBP/USD Video 17.09.18