GBP/USD Weekly Price Forecast – British pound breaks down for the week

The British pound has broken down during the week, slicing through the bottom of a neutral candle stick from the previous week. This obviously is a very negative turn of events but it is sitting on minor support in the form of the 1.32 handle. With that being the case it’s likely that we will continue to see a lot of volatility in this general vicinity, with short-term traders going back and forth. Keep in mind that the Brexit doesn’t do any favors either, so if we can get some clarity there it would make a huge difference in what happens next.

GBP/USD Video 30.09.19

Seeing as how that is almost impossible at this point, I suspect that any rally going forward will probably be sold into, especially near the 1.25 level which of course is a rather significant round figure, and of course the 38.2% Fibonacci retracement level. All of these things have to be taken into account plus the fact that the US dollar is considered to be a major “safety currency.” With that, I like fading rallies on short-term charts, and longer-term traders will probably be paying quite a bit of attention to the previously mentioned 1.25 handle. To the downside, the 1.20 level will be massive support given enough time, as it is a large, round, psychologically significant figure as well, and the scene of the most recent lows. Because of this, I like the idea of simply fading in small bits and pieces and building up a larger core position.

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